Ather Energy, the electric two-wheeler maker, has called for policy predictability in order to make investment plans for the acceleration of electric mobility in the two-wheeler segment. The company expects 100% electrification of the domestic two-wheeler market by 2030 and hopes for an extension of the government support and subsidy for another three to five years.
India s recent cut in subsidies for electric two-wheeler EVs (E2W) under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) scheme could impede the growth of the EV sector and put the government s policy objectives at risk. Conversely, the USA has prolonged tax credits of up to $7,500 for light-duty EVs through 2032 and other measures under the Inflation Reduction Act (IRA). China has recently announced a package of incentives and tax breaks worth $72 billion to promote EVs and other green vehicles. India needs to boost its support for the entire EV value chain, including charging infrastructure and concessional financing.