Govt to calculate FAME-II incentives on ex-factory prices of e-cars, 3-wheelers

livemint.com:

Mint, Dr. Hanif Qureshi, additional secretary, heavy industries, said that the move will be effective immediately on all fresh sales, and not retrospectively.

Qureshi said the revision in the scheme was being made to address the differences in ex-showroom pricing of vehicles in difference states, and to also treat all vehicle segments at par in the policy, as the decision to calculate incentives on ex-factory prices was already made in the case of two-wheelers in 2023. There is just over a month and a half left before the FAME-II policy will come to an end on 31 March.

Ex-factory prices of vehicles are exclusive of GST, freight and dealer margins. It is possible that original equipment manufacturers (OEMs) such as Tata Motors and Mahindra & Mahindra will see a downward revision in the subsidies they can offer per vehicle, as the ceiling on the extent on incentives claimed will now depend on ex-factory prices (as opposed to higher ex-showroom prices).