NEW DELHI: Penetration of electric two-wheelers (e2Ws) in the overall 2W sales increased to nearly 5% in FY23 but pace of adoption has slowed in the past few months after the government slashed the subsidies given under the FAME II policy, rating agency ICRA said on Tuesday.
Post subsidy cut, e2W sales fell over 56% month-on-month in June. In September 2023, e2Ws sales showed a recovery after few manufacturers repackaged their EVs with smaller battery packs and lowered the selling prices.
The subsidy cut also increased the pay-back period for a premium e2W from three years to five years. The term payback period refers to the amount of time it takes to recover the cost of an investment.