The prices of the Ola, Ather, Bajaj Chetak and other electric scooters could be hiked by up to Rs 35,000 from June 1, 2023. So, is it the best time to purchase an e-scooter?
Electric scooters are increasingly becoming popular in India. But, the EV industry will soon hit a new roadblock as they are all set to get costlier from June 1, 2023. The central government will reduce the FAME 2 subsidy amount on electric two-wheelers which will naturally translate into higher product prices. Thus, one can purchase an Ola, Ather, Bajaj Chetak, TVS iQube or any other electric scooter right now and save up to Rs 35,000.
FAME 2 subsidy: A brief history
FAME (Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India) scheme was first introduced in 2015 to promote the production and sales of eco-friendly vehicles. Its second phase was launched on April 1, 2019, and was initially valid till March 2022 but has now been extended till March 31, 2024.
The government earmarked an amount of Rs 10,000 crore for the FAME 2 scheme in the form of subsidies. Moreover, in a bid to increase the demand for electric two-wheelers, the Ministry of Heavy Industries hiked the incentive from Rs 10,000 per kWh to Rs 15,000 per kWh with the maximum cap increasing from 20 percent to 40 percent of the cost of the EV in June 2021. This gave a much-needed boost to the electric two-wheeler industry.
Fast forward to today’s date, the FAME subsidy offered on electric two-wheelers will be brought down from the existing Rs 15,000 per kWh to Rs 10,000 per kWh from June 1, 2023. Moreover, the maximum cap on subsidy will be brought down to 15 percent of the MRP from the current 40 percent.
Several EV makers like Ola Electric, Ather Energy and Bajaj Auto have already announced that they will increase the prices of their products next month and others are expected to follow suit. The price hike for these electric scooters will range anywhere from Rs 25,000 to Rs 35,000, depending on the make and model.
Electric two-wheeler’s current prices in India (valid till May 31, 2023):
Ather 450X is currently priced in Delhi from Rs 98,079 to Rs 1.28 lakh, ex-showroom. The Bajaj Chetak retails from Rs 1.22 lakh to Rs 1.52 lakh, ex-showroom, while the TVS iQube is priced at Rs 1.06 lakh, on-road Delhi. Ola Electric has a vast line-up and its S1 Air range is priced from Rs 84,999 to Rs 1.10 lakh while the S1 and the S1 Pro are priced at Rs 1.15 lakh and Rs 1.25 lakh respectively, all prices ex-showroom.