End of the road for FAME-II scheme for EVs drives up e2W, e3W demand

FAME-II scheme for electric vehicles to end on March 31

There has been a significant increase in queries, bookings, and sales of electric vehicles in the country, particularly in the two- and three-wheeler segments, even as EV manufacturers are in a bind over the likely end to subsidies under the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME-II) scheme after March 31.

The central government provides incentives for the sale of electric two-wheelers, three-wheelers, and four-wheelers under the FAME-II scheme, which is due to end in March. Subsidies under the scheme would be available for electric vehicles sold until March 31, 2024, or until funds are exhausted,