Electric Scooter Retail Sales Cross 1 Lakh Monthly Milestone Ahead Of Subsidy Cut
Retail sales of electric vehicles surged to a new record in May, ahead of the reduction in subsidies offered to buyers of battery-powered two-wheelers.
Total sales of electric vehicles at dealerships stood at 1.57 lakh units, the highest ever, in May, according to data available on the Vahan website. Two-wheeler volumes crossed 1 lakh units, led by demand for scooters from Ola Electric Mobility Pvt. and TVS Motor Ltd.
Demand for two-wheelers spiked ahead of the reduction in the government subsidy for electric vehicles under the Faster Adoption of Manufacturing of Electric Vehicles on June 1. That followed the alleged misuse of the incentives by makers of battery-powered scooters.
For electric two-wheelers, the demand incentive now stands at Rs 10,000 per kWh. The subsidy will be capped at 15% of the ex-factory price, down from 40% at present.
The scheme, which kicked off in April 2019, was extended by two years till March 2024. The total outlay for the second phase of FAME is Rs 10,000 crore to provide incentives to buyers of two-wheelers, three-wheelers, and commercial electric vehicles.