FAME 2 Benefits Are Here To Stay Till 2024

Hurray! More delight for those who want to switch to electrics as the government’s FAME 2 subsidy scheme has now been extended till March 31, 2024. That means three more years of subsidised, economical, and high-quality electric offerings finding their place in your garage. This will surely bolster electric carmakers, a list to which Hero MotoCorp and Ola Electric will likely be added very, very soon.

One of the major talking points of the revised FAME 2 subsidy scheme was the increase in subsidy rates. The government increased the benefit offered from Rs 10,000 per kWh to Rs 15,000 per kWh. That’s a hike of 50 percent.

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The asking price of good-quality products like the Ather 450X, TVS iQube Electric, and Revolt RV400 are now closer to Rs 1 lakh. Bajaj is working on the indigenisation of the Chetak. Once it meets all the criteria for FAME 2, it would be able to bring the asking prices down substantially.

This bodes well not only for urban India but also rural localities. Urban buyers obviously have the obvious benefits of daily commuting, low maintenance and running costs, and ease of usage. However, there is a growing acceptance of electrics in small towns and villages as well. The convenience of charging an electric scooter or a motorcycle at home is a key driver of this welcome change, considering petrol stations usually are far away from rural residential settlements.

How will the situation change when the flexi-fuels are introduced? We have to wait and watch.