Government reduces FAME-II subsidy on electric two-wheelers from June 1, 2023

The central government has reduced the subsidy provided under FAME-II (Faster Adoption of Manufacturing of Electric Vehicles in India) scheme applicable on electric two-wheelers registered on or after June 1, 2023. The Ministry of Heavy Industries notified the changes. For electric two-wheelers, the subsidies have been reduced from Rs 15,000 per kWh to Rs 10,000 per kWh. The cap on incentives for electric two-wheelers will be 15 per cent of the ex-factory price of vehicles, down from 40 per cent at present. This will result in a significant price hike for electric two-wheelers.