Govt Re-opens Subsidies for Electric 2-wheeler Brands

CalenderPublished at May 11, 2023 by BikeJunction
Govt Re-opens Subsidies for Electric 2-wheeler Brands

The Indian government has resumed subsidies under the FAME 2 scheme for all-electric vehicle manufacturers like Ola Electric, TVS, Ather Energy, TVS, Vida, and many more. The cumulative subsidy amount to be allocated is Rs. 500 crore

Halt of Two-Wheeler Subsidies

EV manufacturers Ola Electric, Ather, TVS Motors and Vida are under the government’s radar as they were found not abiding by the standards of the FAME 2 policy. It has been noticed that these e leading EV brands were selling the chargers separately as accessories to meet the threshold of Rs 1.5 lakh ex-showroom for further availing the subsidy. Following this, FAME 2 subsidy was stopped temporarily. As a result, these manufacturers issued refunds to their existing customers.  

Re-opening of Two-wheeler Subsidies - Total Payout

On seeing the gaps, the government has now decided to continue with the FAME 2 subsidy to these 4 top EV two-wheeler manufacturers. Here’s how the payout will be divided:

  • The biggest payout will be about Rs 370 crore will be given to Ola.
  • Around Rs 275 crore will go to Ather. 
  • TVS to get reimbursed Rs 150 crore.
  •  Hero Motocorp (Vida) will receive Rs 30 crore. 

Eligibility for FAME 2 Subsidy

FAME 2 subsidy is applicable to EV 2-wheelers that:

  • Can cover a minimum range of 80 km on a single charge.
  • Maintain a minimum speed of 80 km on a single charge.
  • Achieve a top speed of at least 40 kmph.
  • Moreover, the EV vehicle should be manufactured using 50% local raw materials.

EV Scooters to Become Affordable!

Reserves of lithium were identified in Jammu and Kashmir, which may help in reducing the cost of EV batteries and might make EV scooters more affordable. Thereby increasing the adoption of these breakthrough vehicles even in small cities & towns.

Before you go, do check out - TVS Apache RTR 310 Streetfighter Launching in India - When

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