Hero Motors seeks subsidy for e-bicycles in FAME-II

Pankaj Munjal-led Hero Motors Company (HMC) reached out to the government seeking the inclusion of e-bicycles in the subsidy incentive scheme for electric vehicles.

The company has reached out to the ministry of heavy industries and Niti Aayog to include e-bicycles in the Scheme for Faster Adoption and Manufacturing of Electric Vehicles in India Phase II (FAME India Phase II) scheme, an official told ET.

At present, electric buses, three-wheelers, four-wheel passenger cars, and two-wheelers from empanelled sellers are eligible to get a subsidy under the scheme. The company had not responded to queries till press time.


Two-wheelers need to have a minimum range of 80 kilometres and a maximum speed of at least 40 kilometres per hour (kmph) to be eligible for subsidy under FAME. None of the e-cycles currently sold in the Indian market meets these requirements. The maximum speed for most e-bicycles is currently capped at 25 kmph, far below the qualification criteria for the FAME subsidy. This puts e-cycle sellers at a disadvantage in this cost-conscious segment as consumers tend to prefer a subsidised electric two-wheeler with much more range and speed.

The centre offers an incentive of Rs 15000 per KiloWatt hour to e-2W with a cap of 40% on the cost of vehicles. This brings down the cost of these vehicles by roughly 12% to 33% for the buyers.

The Delhi government has offered a purchase incentive for e-bicycles.

Hero Lectro, an arm of HMC headed by Pankaj Munjal's son Aditya Munjal, retails e-bicycles in India. HMC and Yamaha Motor had also entered into a pact to create a global drive unit company.