Starting today electric two wheelers get more expensive by up to Rs 40,000 – EQ Mag
Prices of electric two-wheelers will go up from June 1 as the central government’s new reduced subsidy structure comes into effect. The costs of electric two-wheelers have gone up from anywhere between Rs 10,000 to Rs 40,000. While some companies have fully passed on the subsidy loss, others have partially passed it on to the consumer.
On May 19, the Ministry of Heavy Industries restructured the Faster Adoption and Manufacturing of Electric Vehicles (FAME) scheme. The new structure, which comes into effect on June 1, brings down the subsidy per electric two-wheeler from 40 percent to 15 percent of the ex-factory price or from Rs 15,000/kWh to Rs 10,000/kWh. Under the earlier structure, some electric two-wheelers were getting a subsidy of up to Rs 60,000 and now companies would have to absorb or pass on the subsidy loss.
Bajaj Auto, the maker of the Chetak electric scooter, said the company has raised prices by Rs 22,000, which is equivalent to the subsidy loss. Ather Energy, which has seen a subsidy loss of roughly Rs 33,000, has increased prices by Rs 10,000. The revised prices for the Ather 450X are Rs 1.45 lakhs for the base variant and Rs 1.65 lakhs for the pro variant. Ola Electric had last week increased prices by Rs 10,000-Rs 12,000.
“Towards propelling the electrification journey further in a sustainable manner and keeping our customer at the forefront, after FAME II revision, TVS iQube‘s price increase from June 1, 2023, will be in the range of Rs 17,000 – Rs 22,000. TVS Motor is also extending an additional loyalty benefit to its customers who have pre-booked before May 20, 2023,” said TVS Motor Company in a statement.
Among other electric vehicle makers, Greaves Cotton, which owns Ampere Electric’s two-wheeler company, has also increased prices between Rs 21,000 – Rs 39,000.
Hero MotoCorp has not announced a price increase as yet.
Reacting to the new structure of the FAME scheme, Manish Saigal, Managing Director at Alvarez & Marsal said, “While the short-term effect of the subsidy cut may lead to higher prices for EV two-wheelers, the eventual outcome will be a considerable reduction in cost for consumers. A recent study by A&M showed that in a survey conducted on over 2,500 end-consumers, 70 percent said they would consider buying an electric two-wheeler over an ICE vehicle.”
Source: PTI
