Gujarat govt’s incentives, FAME-II subsidy may cut electric 2-wheelers’ prices by Rs 30k: ICRA

Incentives under the Gujarat government’s electric vehicle (EV) policy, coupled with enhanced subsidy under the Centre’s FAME-II scheme, will lead to a price reduction of electric two-wheelers by around Rs 30,000 in the state, according to ratings agency ICRA NSE -0.84 %. With the state government also offering incentives for electric four-wheelers at Rs 10,000 per kilowatt-hour (kWh), the ratings agency said there is a possible price reduction of Rs 1.5 lakh to Rs 3 lakh for electric cars in Gujarat.

The Gujarat State Electric Vehicle Policy, 2021, which will commence from July 1, 2021, for a period of four years, is targeting 1.1 lakh electric two-wheelers (e2W), 70,000 electric three-wheelers (e3W) and 20,000 electric four-wheelers (e4W) during the policy period.