Policy tweaks slow electric two-wheeler subsidy claims

The number of electric two-wheelers for which buyers claimed subsidies has dropped to a three-year low this fiscal, as automakers skipped the benefits following stringent rules and frequent changes in criteria.

- Manas Pimpalkhare

Of around 649,000 electric scooters sold in April-October 2025, subsidy was claimed for about 329,000 or about 51% of the units, according to data reviewed by Mint. That compares with consumers utilizing benefits on 89% of about 948,000 battery-powered units sold in FY24 and 93% of around 727,000 in FY23.

Changes in the phased manufacturing programme (PMP) guidelines—covering localization requirements—have "disproportionately impacted mid-sized and small original equipment makers (OEMs), making it slightly more time-consuming for them to qualify under the scheme," said Alok Ray, director-public affairs at industry lobby Society of Manufacturers of Electric Vehicles.

So, consumers were not claiming subsidies as EV makers were outside the domain of the incentives, Ray said. "Continuous changes in subsidy schemes like FAME II, EMPS, and PM E-drive scheme have made it challenging for OEMs to secure certification from testing agencies within tight timelines." A query emailed to the ministry of heavy industries remained unanswered.