Electric two-wheelers can help India meet EV targets faster: Report

News  /   June

New Delhi

Electric two-wheelers can help save Rs 25,000 every year compared to those run on internal combustion engines, says a DownToEarth report. Consumers show willingness due to the easy charging options and smaller battery packs.

Department of Heavy Industry recently revised the incentives provided to electric 2-wheelers under the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME) scheme. Two-wheelers were given a Rs 15,000 incentive per kWh, capped at 40% of the vehicle cost as compared to the previous Rs 10,000 per kWh, at 20%.

The decision came when the country was slowly unlocking from COVID-19 and commuters show a preference for personal vehicles than public transport to reduce further infection spread.

Shubham Srivastava of DownToEarth feels “Apart from personal use, electrification of small-format mobility, especially two-wheelers, can be leveraged due to increase in various emerging-use cases after the pandemic such as ride-hailing, last-mile delivery services and rentals. A commuter’s preference towards electric mobility can play an important role in achieving India’s target of achieving 30 per cent electrification by 2030 (30@30 target).”

Electric two-wheelers can help save Rs 25,000 every year compared to those run on internal combustion engines. Consumers show willingness due to the easy charging options and smaller battery packs.

According to Vahan, a road transport ministry database, the electric two-wheeler segment saw a 65% increase in electric two-wheeler registrations between 2020 and 2021.

Shubham Srivastava of DownToEarth added, “After the revision in the incentive structure under FAME, an eligible two-wheeler can enjoy an average cost reduction of 35%, which is a major improvement for the segment.”

FAME incentivises two-wheelers, three-wheelers, four-wheelers (commercial only) and buses. FAME II has seen sales of over 76,000 vehicles in the last two years, amounting to more than Rs 2.21 billion total incentive, according to the official website.

In India, 16 states have drafted a public EV policy aligned with the electrification target of the nation. To achieve the objectives stated in these policies, many states are also offering fiscal incentives to the buyer in addition to the FAME incentives.

Source – DownToEarth

Also Read:

https://www.automotiveproductsfinder.com/news/ampere-announces-price-cut-for-electric-scooters-with-fame-ii-subsidy/134669

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