Only one and a half days left. Last chance to buy cheap electric scooter is 31 May till 12 midnight. This is because from June 1, 2023, the subsidy amount payable on the factory price of any electric two-wheeler under the FEM-II scheme is being reduced to a ceiling of 15% from June 1, 2023. As a result, the price is going to increase up to Rs 35,000 per model. That list includes Ola, Ather, TVS iQube, Bajaj Chetak and other battery powered scooters. So if you are planning to buy an eco-friendly two-wheeler, it would be wise not to delay.
FAME 2 Subsidy : A Brief History
In 2015, the Center launched the first FAME scheme to popularize eco-friendly vehicles in India. The objective was to increase production and sales of electric and hybrid vehicles. The second phase of this project was launched on April 1, 2019. Which was valid till March 2022. But last year the deadline was extended to March 31, 2024.
The government had announced an allocation of Rs 10,000 crore towards subsidy for Fem-II scheme. Again, seeing the growing demand for electric two-wheelers in the country, the subsidy has been increased from Tk 10,000 to Tk 15,000 per kilowatt hour battery. Again in June, 2021 the subsidy rate increased from 20% to 40%. Which greatly helps in increasing the sales of electric two-wheelers.
However, from the first day of June, 2023, the amount of subsidy for FEM-II project is being reduced from Tk 15,000 to Tk 10,000 per kilowatt hour. And a maximum subsidy of 15% of the car price will be given. The current amount is 40%. And that is why various companies including Ather Energy, Bajaj Auto have announced price hikes for their two-wheelers. The amount will be Rs. 25,000-35,000.
Incidentally, Ather 450X is currently priced between Tk 98,079 to Tk 1.28 lakh (ex-showroom). And the Bajaj Chetak is priced between Tk 1.22 lakh to Tk 1.52 lakh (ex-showroom). Besides, the price of Ola S1 Air has gone from Tk 84,999 to Tk 1.10 lakh (ex-showroom).