Home / Companies / News / Electric scooter companies divided on impact of FAME II subsidy cutback

Electric scooter companies divided on impact of FAME II subsidy cutback

However, premium electric scooter players feel that the market will consolidate with the premium end dominating the play

Premium

However, another leading electric scooter company had an opposite view. It said the drop in subsidy would impact sales only for a few months

Surajeet Das Gupta New Delhi

4 min read Last Updated : May 18 2023 | 10:58 PM IST

Listen to This Article

Leading electric scooter companies are divided on the extent to which sales will be impacted on account of the reduction of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME II) subsidy by a third on each scooter. However, many players concede that the decision will help them rejig their plans and cut costs in the next 12 months, and prepare for a world that will be without subsidy from April 2024.

The Centre on Wednesday decided to slash the FAME II subsidy on electric two-wheelers to Rs 10,000 per Kwh from the existing Rs 15,000 per Kwh. The

Topics : Electric Vehicles FAME-II

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in