Are the country’s electric vehicle (EV) ambitions on a crash course? The answer is clearly in the numbers. The EV revolution, which was kick-started by electric two-wheelers (E2Ws) and hit a market penetration of 7 per cent in FY23, seems to have decelerated fast.
The government’s abrupt decision to cut by a third the second edition of the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles or FAME II scheme and fears that the programme may be halted are putting the brakes on sales. In June E2W sales tanked 60 per cent over May to hit 42,000, the lowest since February 2022, as companies had to raise prices to compensate for lower subsidies.
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