How FAME scheme changes impact electric vehicle fortunes in India

Sharp cutbacks in the incentive scheme is likely to put the brakes on this market

New Delhi’s timing couldn’t have been worse, both for India’s fledgling electric vehicle (EV) sector and prospective electric bike buyers.

It was hard to miss the perfect storm brewing for India’s EV industry since early 2022. On one hand, you had several accidents involving battery fires that unnerved consumers; on the other, uncertainty had crept in over subsidies. Charging infrastructure continued to be a drag, and financial institutions are hesitant to step on the pedal when it came to financing battery-operated vehicles. 

Taken together, all these disparate elements do not bode well for a fledgling electric two-wheeler (e2W) industry, which