Electric Scooter Makers are Worried Basically, the companies making electric two-wheelers (e2Ws) in India are telling the government:
Right now, the government gives subsidies under the PM E-Drive scheme to make electric scooters cheaper. If this stops, manufacturers are afraid that regular people will stop buying EVs because the prices will jump up, and they might just go back to buying petrol (ICE) scooters instead.
What happens if the subsidy stops?
According to the industry bosses, here is the reality check:
- Prices Will Go Up: If the government pulls the plug on the support, the price of an electric scooter could go up by ₹6,000 to ₹12,000.
- Hard to Lower Costs: The manufacturers (like Zuperia Auto) say they can’t really lower their own prices much more because batteries are still expensive, and there are a lot of compliance costs to meet.
- Planning Nightmare: Companies need to know now what the policy will be in 2027 so they can plan their factories and budgets. Uncertainty makes them hesitant to invest money.
Not Everyone Will React the Same Way..
- There is an interesting split in how this affects buyers, according to Sameer Moidin (CEO of EVeium Smart Mobility).
- Regular Folks (You and Me): We are “price sensitive.” If the scooter suddenly costs ₹10k more, we might just buy a petrol one. The subsidy matters a lot here.
- Delivery & Business Fleets: These guys care more about the long game—how much money they save on petrol over 3 years, service uptime, and durability. They might keep buying EVs even without the subsidy because it still saves them money in the long run.($1 = 0.8424 euros)
- The Big Shift: From “Impulse Buy” to “Smart Buy”.
The industry leaders are saying that if the government subsidies stop, the market won’t crash—it will just grow up.
Sameer Moidin (from EVeium) puts it this way: Without that extra discount, people won’t just buy an EV because it’s “cool” or “cheap right now.” They will buy it because they have done the math.
The Vibe: Sales won’t disappear; they will become “evaluation-led.”
Translation: Customers will sit down with a calculator and realize, “Okay, even without the discount, I save money on petrol in the long run.” This signals that the market is maturing.
Not Everyone Relies on Subsidies Anyway.
Kunal Arya (from Zelio E-Mobility) points out an interesting fact:
- A lot of slow-speed electric scooters (the ones you see in local markets) already sell without any government help.
- They aren’t eligible for the big schemes (like FAME), yet people still buy them because they are affordable and cheap to run.
- His Wishlist for Budget 2026: Instead of just giving
- Discounts to buyers, he wants the government to help the makers—specifically by supporting the factories that make the parts. If we make the parts in India (Tier-2 and Tier-3 cities), the scooters become cheaper naturally without needing a forever-subsidy.
- Note on FAME: In case you hear this acronym, it stands for Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles. It’s the old scheme that PM E-Drive is replacing/updating.
The “Tax Trap” and the Motorcycle Problem:
Madhumita Agrawal (CEO of Oben Electric) highlighted two major headaches that need fixing:
The “Inverted Tax” Mess:
The Problem: Companies pay 18% GST when buying raw materials (parts, steel, battery cells) but can only charge 5% GST when selling the finished EV.
The Result: Their money gets stuck in the system (working capital issues), which drives up production costs. They want this fixed.
The Motorcycle Gap:Scooters are going electric fast, but motorcycles (which make up 70% of all two-wheelers in India) are lagging behind.
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