EXCLUSIVE: Maharashtra State Ends Two-wheeler Electric Vehicle Subsidy
64,539 electric two-wheelers were benefited by this policy
Maharashtra has joined the list of states to withdraw subsidies on 2W electric vehicles, soon after Goa became the first state to do so. The Maharashtra state subsidy was rolled out on July 23, 2021 with the aim of accelerating EV sales and stimulating EV manufacturing in the state. While this policy was set to last until December 31, 2021 the subsidy scheme was extended until March 31, 2022.
As of March 31, 2022, the total number of EVs registered in Maharashtra are 80,606, out of which 64,539 are electric scooters and electric bikes. The state had announced that they would subsidise the first 1,00,000 electric two-wheeler buyers, who would be eligible for an incentive of Rs 5,000 per kWh of battery capacity, capped at Rs 10,000. Maharashtra had also offered an early bird incentive of up to Rs 15,000 for purchasing an e-two-wheeler with a 3 kWh battery.
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While prospective two-wheeler EV buyers in Maharashtra can continue to avail the national FAME II subsidy, the Ather 450X Gen3 scooter, which was priced at Rs 1,46,340 with FAME II and state subsidies, will now retail at Rs 1,56,340. Similarly, the Ola S1 Pro too will now retail Rs 10,000 higher than its earlier price of Rs 1,29,999.
The main reason for states to shift to a non-subsidy model is a repercussion of the ever increasing demand for EVs, and the state's inability to cope with the surge in demand. Expect this trend to continue as other states slowly follow suit and either revoke or reduce the subsidies currently offered on electric vehicles.