A Parliamentary panel recommended the government increase subsidies and incentives to electric vehicles to accelerate the transition to electric mobility.
India is primarily a two-wheeler driven market, with almost 22 million sales per year. The Government recently, under FAME-II [Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India] scheme, has increased the subsidy/incentive from Rs 10,000 per Kwh [Kilowatt hour] to Rs 15,000 per Kwh and an increase in the cap on incentive for electric two-wheelers from 20 per cent to 40 per cent of the cost of vehicles.
The committee is hopeful that the increase in subsidy and the ceiling limit would help in demand creation in the electric vehicle segment, the panel said.
