The incentive for electric 2 wheelers has been increased from ₹10,000 per kWh to ₹15,000 per kWh.
Electric 2 wheeler manufacturers are extremely happy with this decision, which will enable many high speed 2 wheelers to become more affordable and will massively boost sales.
Scooters like the TVS i-Qube , Ather 450x, Hero Electric, Okinawa, Ampere and Revolt motorcycles have gotten massive price cuts. The scheme will enable OEM's to increase the production of high speed scooters models.
This scheme also favours electric rickshaws as well as buses but the details of these have to be worked out.
“This would translate into Rs 48,000 incentive per bike that Revolt sells. This could mean FAME II incentives upto Rs 480 crore for current production capacity of 1 lakh bikes per annum," it said. This bold policy measure clearly demonstrates the intent of the government to rapidly transform the adoption of electric vehicles," Revolt and RattanIndia Enterprises Chairman Rajiv Rattan said.
“In what will be seen as one of the most significant moves in the last decade for the electric vehicles industry, the increase in subsidy under FAME II will usher in a new era of electric mobility in India." - Hero Electric MD Naveen Munjal.
Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles ( SMEV) and Bhavish Aggarwal, Chairman and Group CEO, Ola also welcomed this, while Tarun Mehta CEO and Co-Founder of Ather Energy, whose most desired scooters also became cheaper, said that this decision will boost focus on locally built EVs and make India a manufacturing Hub.
While many of us in the EV community are excited by the price cuts being announced by electric scooter OEM's, we at PluginIndia are still apprehensive about this wanton spending of public money. Not because we are against subsidies but because we are not certain if the benefits are going to the right companies.
Raphae did aEV Guru episode recently where he was asking why should the public subsidise electric scooters from well funded companies like Ather - who are selling insanely expensive electric scooters or Hero Electric - who have not innovated enough to reduce costs.
Also, we are not sure if vehicle OEM's will really pass the subsidy to customers. We have seen before, how vehicle OEM's gradually raise ex-Showroom prices of EV's thus 'eating into the government subsidy'. We don't want that to happen again.
Ultimately the government's incentive is not to increase manufacturer margin. There has to be some checks and balances.
But the numbers from companies like Ampere, Hero Electric are positive. You can get a 70-90 km electric scooter within ₹ 70,000 which is way more economical than petrol scooter prices.
Se hope to get more data and numbers from more companies in the coming weeks and we hope to have a discussion on this again.