Electric two-wheeler makers brace for life without subsidy
electric two-wheeler makers are preparing for a future without government subsidies amid uncertainty on whether these vehicles will be included in the upcoming third phase of the FAME (faster adoption and manufacturing of electric vehicles) scheme.
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Any discontinuation of financial incentives for electric two-wheeler purchases is likely to impact demand and consumer adoption for a technology that is still in its early stages of adoption in the country, say executives. Electric two-wheelers comprised 5.5% of India’s total two-wheeler market in FY24.
“Subsidies are not about helping companies survive, they're about accelerating adoption for the entire industry. While products and technology continue to evolve, customer adoption is still at an early stage. Policy support is key to ensuring we achieve our electrification vision,” said Ravneet Phokela, chief business officer, Ather Energy.
Bhavish Aggarwal, founder and CEO, Ola Electric, which leads the e-two-wheeler market, concurred. In an interview on Monday, he said, “I don't think anybody is particularly dependent on the subsidy anymore. It will be good if the subsidy scheme continues for some time because the penetration is still in its early phase. It's anyways only Rs10,000 which is less than 10% of the vehicle’s value.”
Subsidies under the FAME scheme have been reduced over
