The Faster Adoption and Manufacturing of Hybrid and Electric Vehicle (FAME-II) subsidy will end on 31 March 2024.
As of now, the Government of India hasn’t spoken about its intention to extend the subsidies by a few more months. However, some of the EV manufacturers are already working towards increasing the pricing of their products. The prices of some of the electric scooters and motorcycles are likely to go up by close to 25 per cent, which makes these products quite expensive compared to ICE two-wheelers.
If there’s no more subsidy support from the government, there will be a drop in overall sales of EVs due to the increased price tag. This drop in sales could go on for a few months, till the brands find a way to package their EVs to make it more attractive. However, staying profitable would be their priority and as a result of that, there’s very little chance of the segment seeing price wars among brands.