The government’s plans to reduce subsidies on electric two-wheelers is a retrograde step that will hurt the market and hinder adoption of electric mobility, according to industry players. While the Heavy Industries Ministry is planning to increase the outlay for e-two-wheelers from the current level of Rs 2,000 crore under its flagship FAME-II scheme, it is looking at reducing the subsidy per vehicle to 15 per cent of the ex-factory price from 40 per cent at present.
“We feel this sharp reduction in the subsidy is going to hurt the market and the adoption of E2Ws (electric two-wheelers) may go down substantially,” Society Of Manufacturers Of Electric Vehicles (SMEV) Director General Sohinder Gill said in a statement.
