Policy tweaks slow electric 2-wheeler subsidy claims

The number of electric two-wheelers for which buyers claimed subsidies has dropped to a three-year low this fiscal, as automakers skipped the benefits following stringent rules and frequent changes in criteria.

- Manas Pimpalkhare

Of around 649,000 electric scooters sold in April-October 2025, subsidy was claimed for about 329,000 or about 51% of the units, according to data reviewed by Mint. That compares with consumers utilizing benefits on 89% of about 948,000 battery-powered units sold in FY24 and 93% of around 727,000 in FY23.

Changes in the phased manufacturing programme (PMP) guidelines—covering localization requirements—have "disproportionately impacted mid-sized and small original equipment makers (OEMs), making it slightly more time-consuming for them to qualify under the scheme," said Alok Ray, director-public affairs at industry lobby Society of Manufacturers of Electric Vehicles.