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E2W firms look to rejig prices and features to cope with subsidy cut

Of the 300-odd e2W makers in India, 28 were registered on the FAME portal.

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The industry is also urging the government to extend the FAMEII subsidies beyond the current financial year

Nitin Kumar New Delhi

3 min read Last Updated : May 31 2023 | 11:49 PM IST

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As the government’s decision to reduce subsidies on electric vehicles comes into effect Thursday, makers of electric two-wheelers (e2Ws) are planning a slew of measures to reduce costs, such as increasing prices, changing the size of the batteries, and doing away with some of the features.

The latest tweak to the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles, or FAME-II, reduces the incentive for e2Ws to a maximum of Rs 22,500 apiece, from Rs 60,000, resulting in an increase of around 20 per cent in the average price of an e2W, which ranges from Rs 80,000 to Rs 1,50,000.

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