Three wheeler EV makers seek 50% hike in subsidy

EV registrations have crossed the one million mark in FY 22–23, and the transition is being led by e-2W and e-3W. However, a closer look reveals stark differences. FAME II approved models account for approximately 93 per cent of e-2W sales since FY20. In contrast, only 12 per cent of e-3W volumes were FAME II approved models. Further, as of September 30, 2022, approximately 70 per cent of the FAME II subsidy allocation remained undisbursed.

Can the higher incentives for e-3W spur volume growth in approved models? Evidence shows that states that offered higher incentives to e-2W benefitted from a more than 4x higher e-2W volume growth compared to states that offered lower incentives.