Big Jolt for EV Buyers: Govt Reduces Electric Scooter Subsidy in 2025

Big Jolt for EV Buyers: Govt Reduces Electric Scooter Subsidy in 2025

Big Jolt for EV Buyers: Govt Reduces Electric Scooter Subsidy in 2025
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, …

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