New Delhi
The FAME-II scheme of the government will raise the demand for electric two-wheelers by reducing the price gap with their internal combustion engine (ICE)-based counterparts, according to ICRA. The ratings agency also stated that, through the latest modifications to the Faster Adoption and Manufacturing of Electric Vehicles in India scheme (FAME II), the government has already increased demand incentive for electric two-wheelers (e2W) by 50 per cent to Rs 15,000 per kwh, from 10,000 per kwh.
The maximum cap on incentive for e2Ws was also increased to 40 per cent of vehicle cost from 20 per cent earlier, as per the modifications.
Shamsher Dewan, Vice-President and Group Head, ICRA said that, as per ICRA's estimates, the initial cost of ownership for high-speed e2Ws will incrementally reduce by a minimum 10-12 per cent, based on a comparison of currently available popular models and result in a lower payback period. He added that, the payback period was estimated to be four years in terms of total cost of ownership, which has now reduced to three years.
ICRA has recently estimated that e2Ws are likely to achieve 8-10 per cent penetration in terms of new vehicle registrations by 2024-25 and the recent changes may help in achieving those targets.
However, introduction of new models to provide more options to customers, investment in technology, and improving acceptance from financiers are some of the key factors for achieving faster penetration.
Source: India TV
Image Source: Google Images
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