Electric two-wheeler companies to bear the brunt of paused FAME sops

Companies likely to lose Rs 20k per vehicle if they are not registered on time and subsidy not granted

Electric two-wheeler companies, including Bajaj Auto, Ola Electric and TVS, have decided to absorb the subsidy loss on vehicles which have been sold but not registered by 31 March, which is the last day for being eligible for subsidy under the FAME 2 scheme. 

This will force the companies to take a hit of an average Rs 20,000  per vehicle, which is the subsidy passed on to consumers by adjusting the amount from the vehicle’s on-road price.

While the overall inventory levels with the manufacturers is not clear, most companies, in anticipation of the problem, had started liquidating their stocks