The clock is ticking for those contemplating the purchase of an electric vehicle (EV) as the government has announced the imminent end of subsidies under the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME-II) scheme. As of March 31, 2024, or until the funds are exhausted, potential buyers can still avail discounts of up to Rs 37,500.
Concerns Among Companies:
The government’s decision has triggered concerns among major companies, including Hero MotoCorp, Ather Energy, Bajaj Auto, TVS Motor Company, Ola Electric, and Mahindra & Mahindra. Companies with leftover stock after March 31 will no longer be eligible for subsidies under the FAME-II scheme.
Despite expressing apprehensions and seeking government intervention, the concerns of these companies have not led to an extension of the FAME scheme.
Potential Price Hike:
With the looming deadline, there is a possibility that prices of electric vehicles will increase from April 1 if auto companies do not receive government subsidies. In an effort to mitigate this potential price hike, companies are offering substantial discounts on their vehicles to clear existing stock. Torque Motors, for instance, is presently providing the highest discount of up to Rs 37,500.
