Escooters have transformed the urban transportation landscape by providing financially viable, green, and smooth paths for transport. That is why the Government of India also subsidizes buying electrical scooters. The government in India has responded to the rapid adoption of e-scooters by introducing registration of locations, licensing, and insurance. Such policies are deemed to protect the riders and minimize the expense of electric cars.
The government regulates the use of EVs with these policies and makes sure they are safe and accessible. They’re important for both e-scooter users, distributors, and manufacturers. Here are some key policies on E-scooters you need to know.
Regulation and Classification
The Motor Vehicle Act prescribes the usage of e-scooters in India. To streamline regulations, the government has categorized e-scooters based on their speed and motor power:
- Low-Speed E-Scooters: No need for registration, driving license, and insurance for electric scooters with a speed lower than 25 km/h and a motor power less than 250W.
- High-Speed E-Scooters: Insurance, registration, and a valid driving license are required for the vehicle with a speed above 25 km/hour or the power of the motor exceeding 250W.
Incentives & Subsidies
To promote e-scooters and keep the price affordable, the government offers subsidies under the FAME II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme:
- The subsidies are offered to reduce the costs of electric scooters for everyone.
- The amount depends on the battery capacity at ₹10,000 per unit of the battery’s kWh capacity (not more than 40% of the cost of the electric vehicle).
- The other state-level subsidies are given in many states.
GST Reduction on EVs
For the use of EVs, the excise duty on them has been reduced, and the GST rate for e-scooters has been lowered to 5%, unlike the ICE vehicles. This tax relief significantly lowers the total cost e-scooter buyers.
Battery Recycling and E-Waste Management
Another policy set by the government is that e-scooter manufacturers must comply with environmental standards for battery recycling and disposal.
- Battery Recycling Policies: Manufacturers must have a collection facility for used batteries and ensure proper recycling.
- E-Waste Rules: Disposal of used lithium-ion batteries must be done as per India’s e-waste management regulations.
The goal of these policies is to reduce the environmental impact of EV batteries.
Insurance and Safety Requirements
Third-party insurance is mandatory for high-speed e-scooters under the Motor Vehicle Act.
- Riders must wear helmets when operating e-scooters.
- Manufacturers must follow safety guidelines, such as anti-lock braking systems (ABS), adequate lighting systems, and durable tires.
Tax Exemptions and Loans
According to section 80EEB of the Income Tax Act, buyers are allowed to claim up to ₹1.5 lakh in taxes for the interest part of the loan taken to buy an e-scooter.
Charging Infrastructure Development
The government is heavily investing in building robust charging infrastructure:
- FAME II Scheme: It includes funding for charging station development.
- State-Specific Policies: Many states offer incentives to set up charging points at public and private locations.
- Battery Swapping: The Indian government has introduced battery-swapping policies to minimize wait times and improve convenience for users.
Wrapping Up
The government’s intention behind introducing policies on E-scooters is to reduce the costs of scooters, create a sustainable, user-friendly ecosystem, save the environment, and ensure safety for riders. The e-scooter manufacturer like Supertech EV is committed to following all the policies introduced for the manufacturer.