Electric two-wheeler manufacturers TVS Motor Company, Ather Energy and Ola Electric have raised prices of electric scooters, days after the Centre announced a cut in the subsidy on two-wheeler EVs.
The government has reduced FAME-II (Faster Adoption of Manufacturing of Electric Vehicles in India) subsidy on electric two-wheelers from June 1, 2023.
Towards "propelling the electrification journey further in a sustainable manner" after the FAME II revision, TVS Motor said it has hiked the price of TVS iQube from June 1, 2023. The price hike will be in the range of ₹17,000-22,000 depending on the variant.
"FAME II will gradually reduce over the next few quarters... the company will offer a loyalty benefit programme for the customers of TVS iQube who have made bookings till May 20, 2023, for a limited period to ease the cost burden post the revision in FAME II subsidy. Additionally, new customers can also avail new prices without having to bear the full burden of FAME II revision on booking the vehicle starting June 1, 2023," says KN Radhakrishnan, director and CEO, TVS Motor Company.
The iQube base and S trims were earlier priced at ₹1,06,384 and ₹1,16,886, respectively in Delhi.
TVS iQube recorded a sales milestone of 1,00,000 units for its range of scooters in the last financial year. In May 2023, TVS iQube crossed 20,000 units of retail and it continues to have a booking pipeline of over 30,000 units.
Bhavish Aggarwal-led Ola Electric said its electric scooter S1 Pro is now priced at ₹1,39,999, S1 (3KWh) at ₹1,29,999, and S1 Air (3KWh) at ₹1,09,999. These electric scooters are now about ₹15,000 costlier than before.
"We have marginally increased our product prices starting June, despite significant reduction in government subsidies, making Ola S1 the best EV proposition in India. Ola Electric remains resolute in its mission to promote electric vehicle adoption in the country and redefine the way people travel," says Aggarwal, founder and CEO, Ola Electric.
"Month after month, our sales have experienced exponential growth," he adds.
Bengaluru-based Ather Energy also revised the prices of its scooters with 450X now starting at ₹1,45,000 (ex-showroom Bengaluru). The 450X with Pro Pack now costs ₹1,65,435 in Bengaluru, an increase of ₹8,000.
In a notification issued by the ministry of heavy industries on May 19, 2023, the incentive on electric two-wheelers were reduced to ₹10,000 per kWh from the existing ₹15,000 per kWh. The cap on incentives for electric two-wheelers will be 15% of the ex-factory prices of vehicles as against 40% earlier.
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