Policy tweaks drag sale of subsidized electric two-wheelers to three-year low
Live MintThe number of electric two-wheelers for which buyers claimed subsidies has dropped to a three-year low this fiscal, as automakers skipped the benefits following stringent rules and frequent changes in criteria. Changes in the phased manufacturing programme guidelines—covering localization requirements--have “disproportionately impacted mid-sized and small original equipment makers, making it slightly more time-consuming for them to qualify under the scheme", said Alok Ray, director-public affairs at industry lobby Society of Manufacturers of Electric Vehicles. “Continuous changes in subsidy schemes like FAME II, EMPS, and PM E-drive scheme have made it challenging for OEMs to secure certification from testing agencies within tight timelines." To push EVs, the government has subsidized sales since 2015, first under the two iterations of the flagship Faster Adoption and Manufacturing of Electric or FAME till April this year, when it was replaced by the Electric Mobility Promotion Scheme.