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FAME-II Program Revised with Increased Incentives for Electric Two-Wheelers

The Department of Heavy Industries has announced partial amendments to the Faster Adoption and Manufacturing of Electric Vehicles in India Phase-II (FAME-II) program. Specific demand incentive for electric two-wheelers (E2W) of ?15,000 (~$205)/kWh has now been announced. Earlier, there was a uniform demand incentive of ?10000 ($137)/KWh for all vehicles. Also, the cap on incentive for E2W has been raised to 40% of the total cost of the vehicles. The cap earlier was 20% for all vehicles including E2W. Demand aggregation is identified as the key to bringing down the upfront cost of electric three-wheeler electrics, on par with the internal combustion engine vehicles for multiple user segments.