Ola, Ather and other electric two-wheeler prices may rise soon. Here is why

Prices of electric two-wheelers from Ola Electric, Ather Energy, Hero Vida and other manufacturers could up significantly in near future as the Centre plans to reduce subsidy under the FAME II scheme to promote electric vehicles. The Ministry for Heavy Industries has proposed subsidy on electric two-wheelers to 15 per cent. If its proposal is accepted by Centre's panel overseeing the FAME II revision process, it will impact the prices of all the models that fall under the subsidy scheme.

By: HT Auto Desk
| Updated on: 18 May 2023, 10:24 AM
Follow us on:
Follow us on:
The Centre is likely to reduce subsidy offered on electric two-wheelers in India under the FAME II scheme in coming days.
The Centre is likely to reduce subsidy offered on electric two-wheelers in India under the FAME II scheme in coming days.

At least 24 electric two-wheeler manufacturers, who avail benefit under FAME II scheme, met earlier this week to discuss the matter. The outcome of the meeting was to keep demand incentive at 10,000 per kWh of battery capacity. Besides this, consensus was also reached on capping ex-showroom price of electric two-wheelers from 40 per cent to 15 per cent. A government official was quoted by news agency PTI saying, "It was decided that we will transfer the unutilised subsidies to the tune of 1,500 crore from 3 Wheelers and 4 Wheelers to 2 Wheelers but it was found that at the current rate of disbursal (40 pc cap on ex-factory price), the scheme will end in two months."

The ministry's proposal will be reviewed by the Programme Implementation and Steering Committee (PISC) and a final decision is expected soon.

Also Read : Ola, Ather, Hero and TVS agree to refund customers to avail FAME II incentives

Also check these Bikes

Find more Bikes
Ola Electric S1 (HT Auto photo)
₹85.1 - 1.1 Lakhs**Ex-showroom price
Add to compare
Check latest offers
Bajaj Pulsar 150 (HT Auto photo)
₹85.41 - 1.13 Lakhs**Ex-showroom price
Add to compare
Check latest offers
Super Eco Super Eco S 2 (HT Auto photo)
₹85.5 - 1.05 Lakhs**Ex-showroom price
Add to compare
Check latest offers
Hero Electric Photon (HT Auto photo)
₹86.39 *Ex-showroom price
Add to compare
Check latest offers
Suzuki Avenis (HT Auto photo)
₹86.7 - 87 *Ex-showroom price
Add to compare
Check latest offers
Ather Energy Ather 450x (HT Auto photo)
₹1.08 - 1.62 Lakhs**Ex-showroom price
Add to compare
Check latest offers

The cut in subsidy may happen even though the ministry has proposed to increase its outlay for electric two-wheelers under the FAME II scheme. As of now, there are no plans to extend the FAME II scheme after March next year despite demands from several manufacturers. The government may not even introduce FAME III scheme either.

The decision to reduce subsidy despite higher fund allocation under FAME II is aimed to bolster India's EV infrastructure further. Union Minister Mahendra Nath Pandey said “The consensus reached during the stakeholder consultation signals a positive step towards sustainable transportation solutions in India. With continued efforts and collaboration between the government and industry, India can become a global leader in sustainable transportation and reduce its dependence on fossil fuels."

The FAME II scheme was launched in India four years ago. The scheme was applicable for three years, which was later extended by two years. The current scheme will officially end on March 31 next year. The scheme has an overall outlay of 10,000 crore aimed to incentivise electric vehicle buyers to push for EV transition aggressively.

First Published Date: 18 May 2023, 10:24 AM IST
Recommended for you
View all
NEXT ARTICLE BEGINS
Shopping Bag Shop Now
55% OFF
SOFTSPUN Microfiber Cloth - 4 pcs - 40x40 cms - 340 GSM Grey- Thick Lint & Streak-Free Multipurpose Cloths - Automotive Microfibre Towels for Car Bike Cleaning Polishing Washing & Detailing…
Rs. 269 Rs. 604
21% OFF
Involve Your Senses One Musk Organic Car Perfume, Involve Your Senses Strong Fiber Air Freshener to Freshen'up Your Car - IONE01-40 g,Car Accessories interior car perfumes and fresheners
Rs. 315 Rs. 399
73% OFF
pTron Bullet Pro 36W PD Quick Charger, 3 Port Fast Car Charger Adapter - Compatible with All Smartphones & Tablets (Black)
Rs. 349 Rs. 1,299
9% OFF
ShineXPro Microfiber Car Cleaning Cloth - OG Soft 500 GSM Extra Large (35x75 CM) Microfiber Cloth for Car and Bike - Suede Edging for Scratchless Drying and Detailing (Pack of 2)
Rs. 498 Rs. 549

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city