In May the EV industry sold 1,05,299 electric two-wheelers, in the subsequent month only 46,003 two-wheelers were sold, it stated
4 min read Last Updated : Aug 10 2023 | 2:58 PM IST
According to India Electric Mobility Council (IEMC), India Energy Storage Alliance (IESA) has estimated that on discontinuation of the demand incentives, the electric vehicles (EV) sales in India will reduce from estimated 125 million units to 37 million units by 2030.
The central government launched the FAME (faster adoption and manufacturing of hybrid and electric vehicles) scheme in 2015, under which subsidies are given to electric vehicle manufacturers and the benefit is passed on to buyers. The second phase of the scheme FAME II was launched in 2019.
The scheme, which also provides incentives for setting up battery charging stations in the country, is likely to end in March next year.
"...to ensure sustained growth of EV adoption in India, more than 80 EV companies gathered in New Delhi and proposed a holistic reconsideration of demand and supply enablers impacting the EV industry post-FAME II scheme," IEMC said in a statement.
IEMC also expressed concern over the government's move to reduce subsidy under FAME II on electric two-wheelers from Rs 15,000 to Rs 10,000 per kWh and said the electric two-wheeler sales have dropped by more than 50 per cent due to this.