PANAJI
The sudden reduction of Central subsidy, stoppage of State government’s financial assistance, delay over release of subsidies and lack of charging stations, saw the sale of electric vehicles dropping by 80 per cent in the first quarter of the 2025 Calendar year, as against the similar period in 2024 -- the year that too had witnessed a significant downturn in EV adoption.
According to government data, the drop in purchase of EV two-wheelers between January to March was almost 85 per cent compared to 2024 while 65 per cent drop was recorded in adoption of EV four-wheelers. A total of 773 electric vehicles were purchased during the first three months as against 3,928 in 2024.
This year, 614 two-wheeler EVs were purchased as against 3,567 during the first quarter of 2024, a drop of over 83 per cent. The sale of four-wheeler also reported 54 per cent drop as only 144 vehicles were sold out as against 309, last year.
The year 2024 that witnessed initial growth in EV vehicle sale from 11 per cent in January to above 26 per cent in March, thereafter recorded consistent drop up to 3.53 per cent by December. The year saw total 8,970 EVs getting sold, a trend similar to that of 2022, wherein close to 8,000 vehicles were sold.
“Calendar year 2024 witnessed a significant downturn in EV adoption following changes to central government demand subsidies (FAME-II),” a note by the government stated.
“Moreover, in Q1 of 2025, the State government’s demand subsidies also stopped resulting in further decline in EV sales. Currently, the EV sales and its penetration are similar to 2022 levels, disrupting the demand of OEMs (Original Equipment Manufacturer) and discouraging further investments in the sector,” the note added further.
Under FAME-II, the Central government has reduced subsidies for electric two-wheelers, lowering the subsidy per kWh to Rs 10,000 and the maximum subsidy cap to 15 per cent of the ex-factory price. This move comes after the initial outlay of the scheme was nearing exhaustion. The government also reduced the subsidy for electric cargo three-wheelers from Rs 50,000 to Rs 25,000 per vehicle.
After abruptly discontinuing the financial assistance scheme in July 2022, the State government in March, last year, reintroduced the scheme only till December 2024. However, the financial assistance was restricted to only 5,600 EVs purchased from August 1, 2022 to December, 31, 2024.
Under the scheme, a two-wheeler was entitled for benefit of Rs 8,000 to upto Rs 15,000 towards retrofitting, scrapping and de-registration of ICE vehicles and for the purchase of new EVs. The three-wheeler benefit was ranging from Rs 8,000 to upto Rs 60,000 while a four-wheeler it was from Rs 8,000 upto Rs 1 lakh.
“The benefit was reduced from the previous scheme -- which had capped benefit at Rs 30,000 for two-wheelers, Rs 60,000 for electric three-wheelers and Rs 3 lakh for four-wheelers,” the note mentioned.
“The declining sales trend underscores the continued reliance on demand incentives for market growth in Goa. Our price parity forecast indicates that subsidies may be required until at least 2027 for even entry-tier electric two-wheelers to achieve upfront price parity with their ICE counterparts. Sustained support is likely necessary to rebuild market momentum and achieve state electrification goals,” the note mentioned further.
Sources informed that lack of charging stations has also demoralized the buyers from opting for EVs. “Though, the government has planned to have charging stations across the highways, the ground reality is different,” sources said.
