No permanent crutch

Fewer EV buyers availing subsidies is the sign of a maturing market

Reports indicating that the number of electric two-wheelers for which buyers claimed subsidies dropped to a three-year low this fiscal should not ring any alarm bells. Of around 6.49 lakh e-scooters sold in April-October, subsidy was claimed for about 3.29 lakh, or just over half the units. Compare this with FY24, when of the total sales of 9.48 lakh, 89% of consumers availed subsidy. Similarly, in FY23, the number was 93%. While the number of consumers availing subsidy has declined, the total number of units sold has, in fact, risen by 37% compared to the same period last year. Hence, any talk of policy inconsistency is uncalled for. The subsidies are provided as part of the government's FAME scheme, which has run two full courses, with the subsidy amount getting reduced in the second iteration from the first.