EV buyers to get smaller batteries, less features as Centre cuts subsidy

After the Centre’s move to cut FAME-II subsidy on electric two-wheelers, the electric vehicles (EV) industry is looking to make changes in products and prices to stay competitive, reported Economic Times (ET).

The Centre recently announced a reduction in FAME II subsidy on electric two-wheelers to Rs 10,000 per kWh from Rs 15,000 per kWh and the maximum subsidy cap of 40 per cent to 15 per cent.

This change in subsidy is likely to impact the input cost for producers, raising prices for consumers. Keeping this in mind the leading players are planning to bring in lower-spec variants with smaller batteries and changed features to adjust prices and cover costs.