Mahindra has reduced prices of its e2o all-electric car following the launch of the FAME (Faster Adoption and Manufacturing of Electric Vehicles) scheme by the Ministry of Heavy Industries and Enterprises in collaboration with SIAM. The prices of the e2o now start at Rs 4.99 lakh (ex-showroom, Mumbai) instead of Rs 6.76 lakh (ex-showroom, Mumbai) for the base T2 variant while the premium T2O Quick2Charge variant is now priced at Rs 5.38 lakh (ex-showroom, Mumbai) as opposed to Rs 7.12 lakh (ex-showroom, Mumbai) earlier.

The discount, according to Mahindra, will be over and above any other incentives already on offer. Currently, incentives on the e2o are offered in Delhi and NCR, Mumbai, Hyderabad, Bangalore, Ahmedabad, Chennai, Kolkata, smart cities, and cities with population over 10 lakh as notified by the Government.

This incentive under the FAME scheme however does not extend to the battery pack as customers will still have to pay the Rs2,999 per month for the battery leasing scheme.

Under the FAME scheme, the Government of India has sanctioned Rs 795 crore for Phase 1 spanning the fiscal years 2015-16 and 2016-17. Under this scheme the government has introduced incentives for all categories of hybrid and electric vehicles with the major incentives being as follows:-

- Rs 1,800 to Rs 22,000 for scooters

- Rs 3,500 to Rs 29,000 for motorcycles

- Rs 13,000 to Rs 1,24,000 for sub-4-metre four-wheelers

- Rs 11,000 to Rs 1,38,000 for four-wheelers above 4 metres long