The FAME Subsidy is all set to be revised after 31st March, 2024.
Post 31st March 2024, the FAME II subsidy expires and will be replaced by EMPS (Electric Mobility Promotion Scheme) which aims at maintaining EV sales for the long-term goal of growth of electric mobility in the country. The amount of ₹ 22,065/- will be revised and the total benefits will be bought down to approximately ₹ 10,000/-.
What is FAME Subsidy?
The FAME (Faster Adoption of Manufacturing Hybrid and Electric Vehicles) scheme kicked off in 2015 (FAME-I) to drive the widespread adoption of electric vehicles. It received an impressive response not just from the industry but the customers as well. Later in 2019, FAME II was launched for a time frame of 3 years; it has now been extended to 31st March 2024.
Is there a Specific Criteria for FAME Subsidy?
FAME II was launched after the successful outcome of FAME I for faster adoption of EVs by trimming
down the upfront cost of electric vehicles. The allocation was also ramped up to ₹ 10,000 Cr in FAME II for 2019-24.
There are no criteria to avail FAME subsidy. If your EV falls in the bracket, there is an automatic reduction in the
cost while purchasing. For two-wheelers, however, the
FAME Subsidy on electric scooters lowers
the price to ₹ 10,000 per kilowatt hour and is capped at 15% of an electric two-wheeler's ex-showroom price.
Why is NOW the best time to purchase TVS iQube?
TVS iQube, with a range of 100*km on a single charge and a 3kW battery pack, has been appreciated by electric scooter
buyers since its launch. It offers a natural transition from an EV scooter in terms of size, and the simple yet futuristic styling
adds to its overall appeal. Add to that the tech on-board and the assurance of TVS Motor as an OEM; the iQube,
on the whole, has been well-received by EV scooter buyers.
At present, the FAME 2 subsidy offers substantial benefits on the
price of TVS iQube electric scooter i.e. ₹ 22,065/- which is an
upfront reduction in the on-road price of the EV scooter. This TVS iQube offer is a great deal for those who are planning to
buy an electric scooter. These significant benefits are valid only till 31st March and are applicable on select TVS Motor dealerships.
Here is the basic calculation of government subsidy on EVs.
Effective price = Ex-showroom price (including charger + GST) – (FAME II subsidy + Subsidy from State Government).
These prices won’t stay forever.
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