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’Demonetisation moment’: Ather CEO Tarun Mehta as govt raises subsidy on EVs
Demonetisation moment for EVs: Ather CEO Mehta as government raises subsidy on electric vehicles
Electric two-wheeler makers termed as "a phenomenal move" by the government to increase subsidy for such vehicles by 50% under the FAME II scheme saying it would be a game-changer in the adoption of eco-friendly vehicles.
Last week, the government made a partial modification of the scheme for Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II), including increasing the demand incentive for electric two-wheelers to ₹15,000 per KWh from the earlier uniform subsidy of ₹10,000 per KWh for all EVs, including plug in hybrids and strong hybrids except busses.
In the latest modification, the department of heavy industries also capped incentives for electric two-wheelers at 40% of the cost of vehicles, up from 20% earlier.
Comparing it with 'demonetisation moment' for fintech companies, Ather Energy CEO and Co-founder Tarun Mehta said that the revision in the FAME (II) policy, increasing the subsidy by 50% per KWh, is a "phenomenal move"
"Sales of electric two-wheelers have grown despite the pandemic and with this additional subsidy, we expect electric two-wheeler sales to disrupt the market, and clock 6 million-plus units by 2025," Tarun Mehta said in a statement.
Expressing similar views, Society of Manufacturers of Electric Vehicles (SMEV) Director General Sohinder Gill said, "It's an important and an admirable decision taken by the government, a move that will bring down the prices of electric two-wheelers nearer to the IC (internal combustion engine) vehicles and remove one of the biggest blockade of the high sticker price of electric two-wheelers."
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Business NewsCompaniesNews’Demonetisation moment’: Ather CEO Tarun Mehta as govt raises subsidy on EVs
First Published:14 Jun 2021, 07:49 AM IST
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