As govt cuts down subsidy, EV two-wheelers may get costlier from June 1

Electric two-wheelers will become costlier from June 1, 2023, as the government has decided to cut down the incentive from earlier 40 per cent of the EV’s ex-showroom price to now 15 per cent of it, Autocar India (ACI) reported. The incentive cut is substantial and will certainly affect vehicle prices.

Moreover, the government has made changes to the FAME-II subsidy scheme cutting down the support from Rs 15,000 per kWh earlier to Rs 10,000 per kWh now, the report added.

According to a gazette notification issued on May 21, the Ministry of Heavy Industries (MHI) informed that these changes will be applicable from June 1, 2023, and not June 11, 2023, as communicated earlier.