Earlier this year, the government had already reduced the subsidy, which resulted in a decrease in the demand for electric two-wheelers. However, the demand seems to be stabilizing now, leading government officials to argue that the transition to cleaner-fuel vehicles will happen naturally due to the economic advantages of running them, despite their higher initial cost.
Electric Two-wheelers Subsidy: The subsidy for electric two-wheelers is expected to end in a few weeks as the government is not keen on introducing the third phase of Faster Adoption and Manufacturing of Electric Vehicles or FAME III, a scheme being pushed by the heavy industries ministry in the wake of demand from domestic producers. While the finance ministry had opposed the plan, other wings of the government also see merit in North Block s reluctance. As the government had reduced the subsidy earlier this year, the demand for electric two-wheelers had come down but now it seems to be stabilising.
During the year, the Central government had issued notice to several electric two wheeler manufacturers asking them to refund about Rs 500 crore as undue subsidy claims . The companies also refunded the cost of chargers to their customers as that has to be provided as part of the vehicle and can t be charged separately.
During the year, the Central government had issued notice to several electric two wheeler manufacturers asking them to refund about Rs 500 crore as undue subsidy claims . The companies also refunded the cost of chargers to their customers as that has to be provided as part of the vehicle and can t be charged separately.
Ev Subsidy: It is said that the inquiry has been going on for a few months now. It will be of little consequences unless the inquiry goes back to probe officials under whose watch the muck started. The entire set of decision-makers has been changed. Meanwhile, the FAME II scheme has been thoroughly discredited. Any further incentivisation of electric two-wheelers remains uncertain.