In the latest modification, the department of heavy industries also capped incentives for electric two-wheelers at 40% of the cost of vehicle, up from 20% earlier. “The revision in the FAME (II) policy, increasing the subsidy by 50% per KWh, is a phenomenal move,” Ather Energy CEO and Co-founder Tarun Mehta said in a statement. “Sales of electric two-wheelers have grown despite the pandemic and with this additional subsidy, we expect electric two-wheeler sales to disrupt the market, and clock 6 million-plus units by 2025,” he added. The government’s continued support to drive adoption of EVs, with a keen focus on locally built electric two-wheelers will make India the manufacturing hub of EVs, Mr. Mehta added. “Together with the other important factors like extremely low running cost, low maintenance and zero emission, such price levels will surely spur a substantial demand for electric two-wheelers,” Mr. Gill said.

Source: The Hindu June 12, 2021 17:41 UTC