March 31, 2024, is the deadline for the Faster Adoption and Manufacturing of Hybrid and EV (FAME-II) subsidy. The Indian government has not yet announced plans to continue the subsidies for a few more months. Nonetheless, a few EV producers are already attempting to raise the cost of their goods. When compared to internal combustion engine (ICE) two-wheelers, some electric scooters and motorcycles are expected to have price increases of about 25%.
The higher cost of electric vehicles will cause a decline in overall sales if the government withdraws its subsidy assistance. This decline in sales may continue for several months, or longer until the manufacturers figure out how to better package their electric vehicles. But maintaining profitability would be their first objective, therefore there’s very little likelihood of brand price wars in this market.
