e-bikes/Electric Two Wheelers in India may become dearer as the subsidy provided under FAME-II scheme (Faster Adoption of Manufacturing of Electric Vehicles in India) has been revised by the Union Govt. and is all set to take effect from June 1.

FAME II was launched in April 2019 with the view to encourage Faster adoption of Electric and hybrid vehicle by way of offering upfront Incentive on purchase of Electric vehicles.

The revision was notified by the Ministry of Heavy Industries recently. The Ministry stated that the government has reduced the subsidy provided under FAME-II scheme and it is applicable on electric two-wheelers registered on or after June 1, 2023.

Previously the demand incentive for electric two-wheelers was Rs.15,000 per kWh but starting from June, the demand incentive will be Rs 10,000 per kWh.