*Government slashes subsidy to electric two-wheelers to 15 per | The IITian Trader

*Government slashes subsidy to electric two-wheelers to 15 percent from 40 percent*

The central government has pared the FAME-II subsidy of electric two-wheeler to Rs 10,000 per Kwh from the existing Rs 15,000 per Kwh. The existing maximum subsidy cap of 40 percent of the ex-factory price of a vehicle has also been pruned to 15 percent. The government has disbursed subsidies to around 80 percent of the targeted one million electric two-wheelers under the subsidy scheme.

Despite fire safety concerns, the sales of electric two-wheelers seem to have crossed an inflection point in India. The market should continue to grow rapidly despite lowered subsidies as prices have become competitive with vehicles running on internal combustion engines.