Revision to the FAME II (Faster Adoption and Manufacturing Electric vehicles in India) has resulted in a positive scenario for the 2-wheeler electric market. The changes to the FAME II involve:
- The new amendment increases subsidy by 50 per cent to Rs 15,000 per kWh.
- The maximum subsidy is capped at 40 per cent of the vehicle’s cost.
For reference this revision allows the Ather 450X to cost ₹14,500 less than its current price. The earlier subsidy for the vehicles that fit the criteria used to be ₹10,000 per kWh and now it has been upgraded to Rs 15,000 per kWh. The criteria for the FAME II scheme is that the vehicle should have a minimum range of 80km and a minimum top speed of 40kmph.
This new change will boost the already steadily growing electric 2-wheeler market. The sales have been growing even among the pandemic where almost all the other cars sales have suffered. CEO of Ather Energy said that this revision to the FAME policy is a step in the right direction. They have also planned to spread their plants across the country and are hoping that India becomes the manufacturing hub of EVs.
What are your thoughts about EVs, especially two-wheelers? Are they the future of mobility?
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