Subsidy on Electric Scooter/Bike in India

As global warming and its adverse effects become increasingly apparent, we need immediate solutions to combat climate change. India, a growing market for electric vehicles (EVs), has witnessed a surge in the adoption of electric bikes and scooters. To support this transition towards sustainable mobility, the Indian government has implemented various schemes. It includes the Electric Vehicle Policy and the Faster Adoption and Manufacture of (Hybrid &) Electric Vehicles (FAME) scheme. These initiatives aim to provide incentives and subsidies to EV manufacturers and buyers. Here, we will explore the state-wide subsidies offered for electric two-wheelers in India under the FAME scheme.

What is the Electric Vehicle Policy of India?

We can explain to you the Electric Vehicle Policy of India. It is a government initiative. It promotes the country’s adoption and manufacturing of electric and hybrid vehicles. It lays out a complete roadmap to electrify public and private transportation. It aims to reduce pollution and mitigate the impact of climate change. The policy includes various measures, such as subsidies, incentives, and infrastructure development, to accelerate the growth of the electric vehicle industry.

What is the FAME scheme?

The FAME Scheme, launched in 2015 as part of the Electric Vehicle Policy of India, is a financial incentive program designed to promote the production and sales of EVs in the country. The scheme supports manufacturers, suppliers, and buyers of electric vehicles to encourage their adoption and create a robust market for electric mobility.

What are the features of this scheme?

The FAME scheme encompasses several key features to drive the adoption of electric vehicles. Some of the prominent features include:

• Creating demand through financial incentives and subsidies.
• Promoting technology development and manufacturing of electric and hybrid vehicles.
• Establishing a charging infrastructure network to support electric vehicle usage.
• Encouraging public and government fleet electrification.
• Supporting research and development in the field of electric mobility.
• Implementing pilot projects for electric vehicles in various regions of the country.

What is the FAME subsidy?

Here is the table of the different states that are providing subsidies on two-wheelers, including:

How does this subsidy work?

The FAME subsidy works through a process that involves multiple steps:

Eligibility

Check if the electric vehicle you intend to purchase is eligible for the FAME subsidy. The government determines the eligibility criteria and may include factors such as vehicle type, battery capacity, and compliance with technical specifications.

Manufacturer Registration

Ensure that the manufacturer of the electric vehicle you plan to buy is registered under the FAME scheme. Only registered manufacturers can offer the subsidy on electric scooters to the customer.

Purchase Details

Provide the necessary purchase details, such as invoice and vehicle registration documents, to the manufacturer or dealer from whom you buy the electric vehicle.

Subsidy Application

The manufacturer or dealer will forward the purchase details to the FAME scheme’s designated authority. This authority verifies the documents and determines the eligible subsidy amount.

Subsidy Disbursement

On completion of the verification process, the subsidy amount gets credited to the manufacturer or dealer. They, in turn, adjust the electric vehicle’s final price, providing the subsidy benefit to the buyer.

How does this scheme benefit you?

The FAME scheme benefits buyers of electric vehicles in several ways. Firstly, the subsidy reduces the upfront cost of electric vehicles, making them more affordable and competitive with conventional vehicles. Additionally, electric vehicle owners enjoy savings on operating expenses since the cost of electricity is lower than conventional fuel. The scheme also promotes establishing a robust charging infrastructure network, ensuring convenient access to charging facilities for electric vehicle users. By adopting electric vehicles, buyers contribute to reducing air pollution and carbon emissions, creating a cleaner and more sustainable environment.

Conclusion

The Electric Vehicle Policy of India and the FAME scheme play vital roles in accelerating the adoption of electric vehicles. These initiatives provide financial incentives and more. However, you should also consider two-wheeler insurance as its premiums are determined separately. It’s worth exploring potential discounts or special offers provided by insurance companies for electric scooters to ensure you get the best insurance coverage at an affordable cost.