Key Points
A steep reduction in subsidies on electric two-wheelers is set to increase prices for the second time in a year, by up to 12,000 in FY25..
The electric mobility promotion scheme was announced by the ministry of heavy industries in March with a duration of four months from April to July 2024..
Under this scheme, the subsidy for electric two-wheelers has been halved from 10,000 per kilowatt hour (kwh) to 5,000 per kwh..
Since the announcement of the Fame 2 scheme in 2019, this is the third time the subsidy on electric two-wheelers has been revised..
The original scheme, announced with an allocation of 10,000 crore for five years, provided a subsidy of 10,000 per kwh, which was capped to 20% of the ex-factory price of a vehicle..
