premium bikes might see the biggest decline as the reduction in their subsidy would also be the highest and companies could launch stripped down versions of their models to try and keep the market sharesnew delhi the governments plans to reduce subsidies on electric twowheelers is a retrograde step that will hurt the market and hinder adoption of electric mobility according to industry players while the heavy industries ministry is planning to increase the outlay for etwowheelers from the current level of inr 2000 crore under its flagship fameii scheme it is looking at reducing the subsidy per vehicle to 15 per cent of the exfactory price from 40 per cent at present advt we feel this sharp reduction in the subsidy is going to hurt the market and the adoption of e2ws electric twowheelers may go down substantially society of manufacturers of electric vehicles smev director general sohinder gill said in a statement the ground reality is that the indian market remains pricesensitive and total cost of ownership is not firmly established in consumers minds with the majority of petrol twowheelers costing less than inr 1 lakh there are less chances of consumer spending upwards of inr 16 lakh factoring the total cost of ownership he asserted a gradual transition with sustained subsidies would have been ideal to ensure market growth and reach the international benchmark of 20 per cent ev market share however the sudden massive reduction of subsidy will likely lead to a major decline in sales impacting the entire industry for a considerable period of time gill said in the larger context he said this may be a retrograde step leading to higher bills of crude oil imports and adding to the everincreasing air pollution in most of the cities lohia auto industries ceo ayush lohia expressed similar views and said while the government aims to create more room for twowheelers in the market this substantial reduction in subsidies poses a significant challenge for the nascent ev industry it could potentially dent the sales of electric twowheelers hindering their growth and adoption in the country he added lohia further said while the government aims to encourage market growth this move risks impeding the adoption of electric mobility in these crucial early stages sustained support is crucial to drive consumer confidence and ensure the success of the electric twowheeler segment advt he asked the government to reconsider this step and prioritise longterm sustainability over shortterm gains gill pointed out that if the subsidies are reduced premium bikes might see the biggest decline as the reduction in their subsidy would also be the highest and companies could launch stripped down versions of their models to try and keep the market sharesread alsomumbai is not pedalfriendly bicycling communitybikers riding without helmets to have their driving licences suspended soon in jharkhandyamaha india eyes 20 volume growthescooters may get pricier on proposed subsidy cut pti published on may 19 2023 at 0742 am ist telegram facebook copy link be the first