FAME II subsidy amount for electric 2-wheelers increased by 50%

sri_tesla · 12th June 2021, 17:51

Department of Heavy Industry Ministries has announced the increased subsidy for electric 2 wheelers effective immediately. The subsidy amount of Rs 10,000 per kWh of battery capacity will be increased to Rs 15,000 per kWh. The maximum cap of incentive will be 40% of the cost of the vehicle. This would translate to an incentive of at least Rs 45,000 for an electric two-wheeler meeting the FAME II criteria.

For three-wheelers, state-owned Energy Efficiency Services (EESL) will come out with aggregate demand for 300,000 electric three-wheelers for multiple user segments. The details will be worked out by EESL for implementation.

Lastly, for electric buses, the Heavy Industry Ministry had detailed that cities with a 4-million-plus population – Mumbai, Delhi, Bangalore, Hyderabad, Ahmedabad, Chennai, Kolkata, Surat, and Pune – will be targeted. EESL will again go for aggregation of demand in these cities for the remaining e-buses on an OPEX basis. The details shall be worked out by EESL for implementation.

Ather Energy already announced the price cuts of 450x due to this increase in subsidy. 450x will be now cheaper by Rs 14,500. Ex-showroom price of 450x in Bangalore will be now Rs 1,44,500 vs Rs 1,59,000 previously.

Ather Energy CEO Tarun Mehta, hailed the increase in subsidy as a phenomenal move and they expect electric two-wheeler sales to disrupt the market, and clock over 6 million units by 2025.

Source:
https://www.autocarpro.in/news-natio...in-india-79379

FAME II subsidy amount for electric 2-wheelers increased by 50%-fame2.jpg

Everlearner · 12th June 2021, 22:15

I'm glad that the govt is putting more efforts to promote electric vehicles. The real disruption can be achieved only with bringing out cost effective vehicles without govt support. Then the e mobility will not require tax payers money

aby.sam · 14th June 2021, 10:52

Is this subsidy applicable for 2nd electric vehicle being purchased. Say in my case I have an Ather 450. If I purchase a Nexon EV, am I eligible for government subsidy?

jithin23 · 14th June 2021, 11:19

A step in the right direction! This will make the prices of electric 2 wheelers almost at par with their IC counterparts. The OPEX advantage of an EV is the trump card over the IC engine given the increasing fuel prices and maintenance costs. For those who are looking at intra city commute this seems like a viable option. For road trips on electric 2 wheelers, it's still some time away. Even Electric cars are catching up at a steady pace.

Even transport corporations can benefit from this scheme and it's a win-win for both the passenger and the corporation as they can price the tickets at a reasonable rate.

I hope that similar benefits are passed on for manufacturing or importing electric vehicle components as supply chain is one of the biggest factors for price rise in any industry.

Next stop: To strengthen electric and EV charging infrastructure in a phased manner across the country.

gkveda · 14th June 2021, 12:02

Good decision by Government. But my only concern is, manufacturers will just increase the selling price to double the current value to swallow all the benefits of subsidy.

If Government can control this price hike, then all the benefits can be considered to be passed on to the purchaser.

Fingers crossed to see the above governance by Government

travelling owl · 14th June 2021, 12:34

Any idea what this aggregation exactly means? how will they aggregate demand for 3W and bring down the costs?

SKC-auto · 15th June 2021, 13:22

Quote:

Originally Posted by aby.sam

Is this subsidy applicable for 2nd electric vehicle being purchased. Say in my case I have an Ather 450. If I purchase a Nexon EV, am I eligible for government subsidy?

Fame 2 is not applicable for private 4W, applicable only for all 2W, 3W and 4W Commercial vehicle.

The subsidy is applicable when you buy multiple 2 wheelers, the subsidy is deducted before the ex showroom price.

schwartz · 10th July 2021, 16:16

Electric two wheeler sales has already begun to take giant strides. In just six months of 2021, sales of high speed electric scooters (Activa equivalent) have already exceeded the sales in the whole of 2020. (source: Autocar Pro)

The FAME II scheme will provide a big boost to the already buoyant segment of the industry. Just this week Ampere Electric cut prices of their e-bikes by 26,000 per unit in Gujarat. In addition the central government has announced the PLI scheme for ACC batteries. This could further cut prices of the electric bikes by around Rs. 5,000 per unit for the beneficiaries (at the max; will ultimately depend on how competitive the bidding gets). Stars are aligning for the likes of Ola Electric.

To be fair, the numbers electrics constitute are still very small. Around 4 lakh scooters are sold in the country on average every month.

Yet, traditional bike makers should be very worried. Very worried indeed!

schwartz · 14th July 2021, 13:23

The Maharashtra government has announced EV policy (source). They seem to be giving four kinds of incentives - 1) basic incentive; 2) early bird incentive; 3) assured buyback and warranty incentives; 4) scrapage incentives. For a high speed scooter by my math this would add to around Rs 44k per scooter. May be my math is wrong. However, if the math is correct, along with the FAME II subsidy the price of an electric scooters (that has been ratified for the various incentives) will be below Honda Activa in Mumbai.

This changes the game completely.

12th June 2021, 17:51	#1
sri_tesla Senior - BHPian Join Date: Apr 2016 Location: Hyderabad Posts: 1,010 Thanked: 5,895 Times	FAME II subsidy amount for electric 2-wheelers increased by 50% Department of Heavy Industry Ministries has announced the increased subsidy for electric 2 wheelers effective immediately. The subsidy amount of Rs 10,000 per kWh of battery capacity will be increased to Rs 15,000 per kWh. The maximum cap of incentive will be 40% of the cost of the vehicle. This would translate to an incentive of at least Rs 45,000 for an electric two-wheeler meeting the FAME II criteria. For three-wheelers, state-owned Energy Efficiency Services (EESL) will come out with aggregate demand for 300,000 electric three-wheelers for multiple user segments. The details will be worked out by EESL for implementation. Lastly, for electric buses, the Heavy Industry Ministry had detailed that cities with a 4-million-plus population – Mumbai, Delhi, Bangalore, Hyderabad, Ahmedabad, Chennai, Kolkata, Surat, and Pune – will be targeted. EESL will again go for aggregation of demand in these cities for the remaining e-buses on an OPEX basis. The details shall be worked out by EESL for implementation. Ather Energy already announced the price cuts of 450x due to this increase in subsidy. 450x will be now cheaper by Rs 14,500. Ex-showroom price of 450x in Bangalore will be now Rs 1,44,500 vs Rs 1,59,000 previously. Ather Energy CEO Tarun Mehta, hailed the increase in subsidy as a phenomenal move and they expect electric two-wheeler sales to disrupt the market, and clock over 6 million units by 2025. Source: https://www.autocarpro.in/news-natio...in-india-79379 Last edited by sri_tesla : 12th June 2021 at 18:03.
	(17) Thanks

12th June 2021, 22:15	#2
Everlearner BHPian Join Date: Apr 2021 Location: Bangalore Posts: 225 Thanked: 969 Times	re: FAME II subsidy amount for electric 2-wheelers increased by 50% I'm glad that the govt is putting more efforts to promote electric vehicles. The real disruption can be achieved only with bringing out cost effective vehicles without govt support. Then the e mobility will not require tax payers money
	(1) Thanks

14th June 2021, 10:52	#3
aby.sam BHPian Join Date: Nov 2007 Location: Bangalore Posts: 48 Thanked: 17 Times	re: FAME II subsidy amount for electric 2-wheelers increased by 50% Is this subsidy applicable for 2nd electric vehicle being purchased. Say in my case I have an Ather 450. If I purchase a Nexon EV, am I eligible for government subsidy?
	() Thanks

14th June 2021, 11:19	#4
jithin23 BHPian Join Date: Mar 2019 Location: Globetrotter Posts: 845 Thanked: 3,114 Times View My Garage	re: FAME II subsidy amount for electric 2-wheelers increased by 50% A step in the right direction! This will make the prices of electric 2 wheelers almost at par with their IC counterparts. The OPEX advantage of an EV is the trump card over the IC engine given the increasing fuel prices and maintenance costs. For those who are looking at intra city commute this seems like a viable option. For road trips on electric 2 wheelers, it's still some time away. Even Electric cars are catching up at a steady pace. Even transport corporations can benefit from this scheme and it's a win-win for both the passenger and the corporation as they can price the tickets at a reasonable rate. I hope that similar benefits are passed on for manufacturing or importing electric vehicle components as supply chain is one of the biggest factors for price rise in any industry. Next stop: To strengthen electric and EV charging infrastructure in a phased manner across the country. Last edited by jithin23 : 14th June 2021 at 11:20.
	(1) Thanks

14th June 2021, 12:02	#5
gkveda Senior - BHPian Join Date: Apr 2009 Location: Bangalore Posts: 1,151 Thanked: 4,752 Times	re: FAME II subsidy amount for electric 2-wheelers increased by 50% Good decision by Government. But my only concern is, manufacturers will just increase the selling price to double the current value to swallow all the benefits of subsidy. If Government can control this price hike, then all the benefits can be considered to be passed on to the purchaser. Fingers crossed to see the above governance by Government
	() Thanks

14th June 2021, 12:34	#6
travelling owl BHPian Join Date: Nov 2019 Location: Bengaluru Posts: 43 Thanked: 148 Times	re: FAME II subsidy amount for electric 2-wheelers increased by 50% Any idea what this aggregation exactly means? how will they aggregate demand for 3W and bring down the costs?
	() Thanks

10th July 2021, 16:16	#8
schwartz BHPian Join Date: Jun 2021 Location: Mumbai Posts: 36 Thanked: 146 Times	Re: FAME II subsidy amount for electric 2-wheelers increased by 50% Electric two wheeler sales has already begun to take giant strides. In just six months of 2021, sales of high speed electric scooters (Activa equivalent) have already exceeded the sales in the whole of 2020. (source: Autocar Pro) The FAME II scheme will provide a big boost to the already buoyant segment of the industry. Just this week Ampere Electric cut prices of their e-bikes by 26,000 per unit in Gujarat. In addition the central government has announced the PLI scheme for ACC batteries. This could further cut prices of the electric bikes by around Rs. 5,000 per unit for the beneficiaries (at the max; will ultimately depend on how competitive the bidding gets). Stars are aligning for the likes of Ola Electric. To be fair, the numbers electrics constitute are still very small. Around 4 lakh scooters are sold in the country on average every month. Yet, traditional bike makers should be very worried. Very worried indeed! Attached Thumbnails
	(1) Thanks

14th July 2021, 13:23	#9
schwartz BHPian Join Date: Jun 2021 Location: Mumbai Posts: 36 Thanked: 146 Times	Re: FAME II subsidy amount for electric 2-wheelers increased by 50% The Maharashtra government has announced EV policy (source). They seem to be giving four kinds of incentives - 1) basic incentive; 2) early bird incentive; 3) assured buyback and warranty incentives; 4) scrapage incentives. For a high speed scooter by my math this would add to around Rs 44k per scooter. May be my math is wrong. However, if the math is correct, along with the FAME II subsidy the price of an electric scooters (that has been ratified for the various incentives) will be below Honda Activa in Mumbai. This changes the game completely.
	(1) Thanks