Ather Energy hopes EV subsidies under FAME II to continue beyond 2023

Electric two-wheeler manufacturer Ather Energy hopes that the Centre will continue with the FAME II subsidies on EVs in India well into 2023 to help in faster adoption of electric vehicles in the country. The company has also sought the inclusion of Indian EV startups under the PLI (Production-Linked Incentive) scheme announced earlier by the Centre.

Tarun Mehta, co-founder and CEO at Ather Energy, said, "The demand for electric vehicles continues to surge ahead as consumers reap benefits offered by the FAME II subsidy and tax rebates. To keep up the consumer demand and to drive faster adoption of EVs, we are hopeful that the FAME II subsidy would continue well beyond 2023."

Ather Energy is a Bengaluru-based Indian EV startup. It offers two electric scooters Ather 450X and Ather 450 Plus to Indian customers. The company is setting up its second manufacturing facility which is expected to start operations later this year. Once functional, the facility will expand Ather Energy's production capacity to around four lakh vehicles per year.

The company also thinks that EV subsidies and tax rebates under the FAME II policy are key to push for faster adoption of such vehicles. Mehta said that the demand for electric vehicles continues to surge because consumers are reaping the benefits offered by the FAME (Faster Adoption and Manufacturing of Electric Vehicle) II subsidy and tax rebates.

"The EV sector requires such early bird incentives to accelerate manufacturing and consumer adoption to ensure stability in the coming years as we see new players emerging, offering reliable products and value compared to petrol vehicles," Mehta said.

Ather Energy is also advocating inclusion of Indian EV startups in the recently announced PLI scheme by the government. Mehta said, “While the startups form the majority of the EV ecosystem in India and have led the EV revolution from the front, a majority of them are ineligible for the PLI scheme. Similarly, EV manufacturers have highlighted concerns around GST inverted structure and have requested reducing taxes on input costs."

Mehta said that EV charging infrastructure in India is another key aspect to drive faster EV adoption as well as gain confidence of EV adopters. "There is a tremendous requirement to mandatorily ensure EV charging infrastructure to be set up in all existing and upcoming housing projects and commercial establishments. Also, incentivising setting up EV charging stations in existing residential areas, housing complexes, and commercial establishments will go a long way in setting up the infrastructure," Mehta said.

Earlier this month, Hero MotoCorp announced to further invest up to ₹420 crore in Ather Energy.

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