Society of Manufacturers of Electric Vehicles raises concerns over the impact of subsidy reduction on EV adoption, while startup players welcome the decision as an opportunity for the industry to stand on its own.
The Society of Manufacturers of Electric Vehicles (SMEV) has expressed concerns over the sudden reduction of subsidies for electric two-wheelers and its potential impact on EV adoption. According to SMEV, this move may lead to a significant decline in the adoption of electric vehicles and could have a lasting effect on the entire industry.
On the other hand, startup players in the electric mobility space have welcomed the government’s decision, stating that it is time for the EV industry to become self-sustainable. Nikhil Bhatia, the Co-Founder and Chief Operating Officer of HOP Electric Mobility, has supported the government’s move, emphasizing the need for a pragmatic approach to the long-term advancement and sustenance of the electric vehicle segment. Bhatia believes that phasing out subsidies is a forward-looking step, and it is now time to gradually reduce and eventually eliminate dependence on subsidies in the electric two-wheeler industry.
The Heavy Industries Ministry has notified changes to the FAME-II scheme, which will result in a reduction of subsidies provided for electric two-wheelers registered on or after June 1, 2023.
Overall, this development highlights a divergence in opinions within the electric vehicle industry. While SMEV raises concerns about the potential decline in EV adoption due to subsidy reduction, startup players like HOP Electric Mobility see it as an opportunity for the industry to mature and establish self-sustainability. The long-term impact of this subsidy reduction on the electric vehicle market remains to be seen, as it will likely affect the dynamics of the industry and influence consumer behavior in the coming months.