Private EV buyers may not get cash incentives

The government of India is planning to withdraw cash subsidies offered to private electric vehicle (EV) buyers. Instead, incentives on the purchase of EVs will only be given to cab aggregators like Ola and Uber, as their vehicles are likely to run more than privately owned EVs.

According to a media report, the government believes that incentivising private EVs does not make a substantial difference in promoting sales. The move is expected to promote public transport companies like Ola and Uber to add more EVs to their fleet.

At present, the government offers a maximum discount of Rs. 1.3 lakh on electric cars as part of the FAME subsidy. The heavy industries ministry has proposed to scrap this in its FAME Phase 2 draft policy. Reports suggest that the government will continue to offer incentives on electric buses and 2-wheelers. However, the subsidy on e-buses will be reduced from 60% to 40% of the total cost of the vehicle.

Source: Economic Times