India electric two-wheeler market to grow despite FAME II subsidy cut: TVS

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India’s electric two-wheeler industry is set to grow stronger in the coming days despite FAME II subsidy cuts raising concerns over a possible drop in sales. TVS Motor, one of the leading two-wheeler manufacturers, believes that India will soon become a major hub for the export of electric two-wheelers as well as electric scooters and electric motorcycles. TVS Motor, currently sells the iQube electric scooter in India. The two-wheeler maker plans to expand its portfolio of electric two-wheelers in the coming days.

go through: HT car desk
| Updated on: June 27, 2023 at 16:59

TVS offers two sizes of iQube electric scooters, Standard and S.

TVS Motor’s statement comes weeks after the center approved the Heavy Industry Ministry’s proposal to reduce subsidies for electric two-wheelers purchased on and after June 1. Customers can only get 15 percent of the total cost of the electric two-wheeler back as a subsidy, according to a notice issued by the ministry. In its 2022-23 annual report, TVS Motor said: “Consumer interest has been boosted by central and state governments actively supporting consumer interests through PLI, FAME II and state-specific support policies, and the EV industry will continue to grow at a rapid pace. growth.” As with ICE (internal combustion engine) two-wheelers, India will also be a major hub for electric two-wheeler exports, in addition to its large domestic market. “

According to the FAME-II scheme, the demand incentive for electric two-wheelers has been revised to $10,000 per kWh. In addition, the upper limit of incentives for electric two-wheeled vehicles has been adjusted from the original 40% to 15% of the ex-factory price of the vehicle.

TVS Motor is also working on expanding its EV footprint in India. The manufacturer aims to “expand the product portfolio with new models of the iQube and launch a new brand,” the report said. TVS Motor will also introduce new innovative features and technologies in the coming days. It will also expand its footprint to the current 130 cities in India as well as beyond. “Furthermore, through a strategic partnership with BMW, the company is involved in the joint design and development of urban electric vehicle options for the global market,” TVS Motor said.

According to the two-wheeler maker, the penetration rate of electric two-wheelers was 4.7 percent in the last fiscal. TVS said this was made possible thanks to the incentives provided by the FAME II and PLI schemes.

First published date: June 27, 2023 at 16:59 PM USST

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