Electric Mobility

Three wheeler EV makers seek 50% hike in subsidy

Gagan Sidhu

Notable because

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.

What to look out for in the months ahead

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.