Electric two-wheelers set to get more expensive from June 1. Here’s why

Electric scooters and motorcycles are all set to get more expensive from June 1, 2023, with the recent change in FAME II subsidy norms

The government has decided to revise the FAME II subsidy on electric two-wheelers since the original allocation of 2,000 crore has been exhausted

To avoid ending the subsidy abruptly and support the rampant growth of electric two-wheelers, the government has now decided to revise the FAME subsidy structure

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In order to ensure the subsidy stays for longer, the payout will be revised to 10,000 per kWh instead of 15,000 per kWh

The total subsidy will be limited to 15% of the electric two-wheeler’s ex-factory cost that’s capped at 1.50 lakh. The previous limit was up to 40% of the ex-factory price

Models like the Ather 450X should be more expensive by about 23,000, while the Ola S1 Pro will have its subsidies reduced by 37,000

The Tork Kratos R electric motorcycle will get more expensive by about 40,000 with the subsidy revision

It’s unclear the extent to which electric manufacturers will pass on the reduction in subsidies. It could take place in a staggered manner to avoid a massive blow to customers

If you were planning to bring home an electric two-wheeler, you should consider doing it before June 
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