Introduction:
Considering purchasing an electric scooter this year? You should act quickly. The central government has officially reduced subsidies under the FAME-II program for electric two-wheelers effective from July. Here’s what you should be aware of prior to your next EV acquisition.
What’s Changing?
• The subsidy per electric scooter has decreased from ₹22,500 to ₹10,000.
• This adjustment impacts all EVs sold under the FAME-II initiative post July 1, 2025.
• The new subsidy limit: ₹5,000 for every kWh of battery capacity, with lower overall caps than previously established.
Why Was the Subsidy Reduced?
• Financial Limitations: The FAME-II fund was almost depleted.
• Industry Growth: The government believes that the electric vehicle market is now capable of thriving without substantial assistance.
• Change in Priorities: Resources are being redirected towards electric buses, trucks, and electrification of public transport.
Impact on Buyers
• Popular models such as the Ola S1, Ather 450X, and TVS iQube could see price increases of ₹12,000 to ₹18,000.
• Some producers might provide short-term discounts to mitigate the loss from the subsidy cut.
• Individuals buying EVs for the first time might postpone their choices due to the price increase.
What Experts Say
“While this decision was anticipated, it still dampens the momentum of EV adoption,” remarked an analyst within the automotive industry.
“Electric vehicle manufacturers should concentrate on creating innovations and setting prices — rather than solely relying on subsidies,” noted another founder of an EV startup.
Future of Electric Mobility in India
• Electric vehicle adoption continues to grow — particularly in urban centers.
• The government is expected to bring forward new incentives through state-level policies.
• Local battery production and research and development will be the next major focuses.
Final Word
If you're looking to purchase an electric scooter, now could be the optimal time to do so before prices rise. The subsidy reduction indicates a new chapter — where the electric vehicle sector must rely on value and consumer trust instead of government backing.
IN News Live will persist in monitoring trends in the EV market, along with reviews and policy changes for your benefit. Stay tuned!
