Ather Energy has announced that starting from June 1, 2023, the price of its 450X electric scooters will increase due to the reduction in subsidies by the central government. Through a social media post, the electric vehicle manufacturer has informed customers that they can save up to ₹32,500 until May 31, 2023, before the price hike takes effect. Ather Energy has also mentioned that this limited-time offer will be available while stocks last.
Ather Energy, in a recent social media post, has encouraged customers to purchase their 450X electric scooter before May 31 to take advantage of the current FAME-II incentives and avoid the upcoming price increase. The company has stated that buyers can save up to ₹32,500 through this limited-time offer. Tarun Mehta, the CEO of Ather Energy, echoed the sentiment in a retweet, expressing his belief that the electric vehicle industry should strive to become self-sufficient and not rely heavily on government subsidies for growth.
He sarcastically remarked on the fluctuating subsidy amounts provided by the government, highlighting how it started at ₹30,000 in 2019, doubled to ₹60,000 in 2021, and was reduced to ₹22,000 in 2023. Mehta acknowledged that the subsidy reduction was expected and described the journey of the Indian electric two-wheeler industry as a roller coaster ride.
The decision to increase prices coincides with the Ministry of Heavy Industries' proposal to introduce a 15 percent subsidy for electric two-wheelers. This proposal will lead to a price adjustment for all electric two-wheelers in India that previously received subsidy benefits. Recently, a meeting was held among 24 electric two-wheeler manufacturers who have been benefiting from the FAME-2 subsidy. The purpose of the meeting was to discuss the future strategy in response to these developments.
The FAME scheme incentives have played a crucial role in driving the growth of the electric two-wheeler industry in India in recent years. These incentives, along with additional benefits provided by state-level EV policies in certain regions, have significantly reduced the initial cost of purchasing electric two-wheelers for buyers. As a result, the electric two-wheeler market has experienced substantial expansion nationwide. However, with the reduction in FAME-2 incentives and the subsequent price hikes by EV manufacturers, it remains to be seen how both the industry and electric vehicle customers will respond to these changes and adapt to the impact they may have.
Catch all the Auto News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
MoreLess