In a third petition, the Centre for Business, Industry and Trade Advocacy has written to the Parliamentary Standing Committee on Industry, saying that the move to cut subsidies serves to feed the fuel-based ICE scooter lobby.

The body goes on to add that the fuel-based ICE scooter lobby has constantly complained about the price equivalence that the FAME scheme created between the electric vehicles and the ICE vehicles. “Already the prices of EVs have increased by substantial percentages. And now EV is becoming a premium product, out of reach of the common man,” the letter added.

The letter further goes on to add that the recent actions of the MHI are mirroring the exact desires of the polluting ICE vehicle lobby, ‘which have openly advocated the abrogation of the FAME subsidy scheme. Why is the Department entrusted with bringing in the EV revolution to India, looking like it is supporting the detractors of the E-Mobility thrust of the Government of India?" it asked.

The FAME subsidy revision came into effect earlier this month, as the government has decided to reduce the cap on incentives to 15% from the earlier 40% (on ex-factory prices), under the FAME 2 scheme.