Ather Energy’s CEO, Tarun Mehta, warned that the potential withdrawal of government incentives for electric two-wheelers in April could lead to one or two more years of stagnated growth.
While the industry has become less reliant on subsidies, an abrupt discontinuation in April may prompt industry players to work harder but still result in slowed growth, moving the industry further from its targets.
The central government provides incentives under the FAME-II scheme, set to end in March, and reduced subsidies for electric two-wheelers in June last year.
Mehta highlighted the impact of the sudden subsidy reduction on the industry’s growth in 2023. The absence of the FAME scheme in Chandigarh could affect the city’s ongoing trend in electric two-wheeler sales, according to Mehta.
The FAME scheme has played a crucial role in fostering the adoption of electric vehicles (EVs) and hybrids across India, contributing to pollution reduction and decreased reliance on fossil fuels, he added.
Affordability remains a key driver for widespread electric two-wheeler adoption in India, and the FAME scheme has played a vital role in making EVs economically viable for consumers, addressing high battery costs and supply constraints on components, according to the company statement.
