E2W makers gear up for scale, hope FAME will continue to fuel operations

The key to increasing volumes is to offer more products at varying price points and expand distribution and markets

Electric two-wheeler (E2W) companies see FY24 as the year to build scale. Most companies say they are planning to ramp up volumes, raise fresh capital, expand distribution, launch an array of new products, and take their first steps into global markets.

Crucially, FY24 will also test their abilities to survive without the second edition of Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles (FAME II) subsidy, which ends this financial year. Most companies want it extended for a year or two.

The subsidy ranging from Rs 40,000 to Rs 60,000 a vehicle covers 40 per cent of the ex-factory