Made-in-India electric scooters get cheaper: Ather, Okinawa announce price cut2 min read . Updated: 12 Jun 2021, 08:51 PM IST
- One of the biggest amendments made in Fame II is the subsidy offered to the electric 2-wheeler manufacturers
Fame II scheme was introduced in India to boost demand for electric vehicles (EVs). In order to give the industry another shot in the arm, the Ministry of Heavy Industries and Public Enterprises has made a crucial modification to the Fame II policy. After the latest revision, EV manufacturers are expected to be better prepared to compete with their ICE counterparts.
One of the biggest amendments made in Fame II is the subsidy offered to the electric 2-wheeler manufacturers. The demand incentive has been increased to ₹15,000 per KWh from ₹10,000 per KWh. The government has also announced that the cap on incentives for Electric 2 Wheelers will be 40% of the cost of vehicles
Popular EV manufacturers in the country have decided to pass the benefit offered by the government directly to the buyer. Ather Energy has announced price cuts on Ather 450X and 450 Plus. Here are the revised prices
For 450X: Bangalore: ₹1,44,500 (ex-showroom)
Delhi : ₹1,32,426 (ex-showroom)
For 450 PlusBangalore: ₹1,25,490 (ex-showroom)
Delhi : ₹1,33,416 (ex-showroom)
Tarun Mehta, CEO and Co-founder Ather Energy said, “The revision in the FAME policy, increasing the subsidy by 50% per KWh is a phenomenal move. Sales of electric two wheelers have grown despite the pandemic and with this additional subsidy, we expect electric two wheeler sales to disrupt the market, and clock 6 million+ units by 2025. Ather Energy already has plans to expand distribution to 30 cities in the next 6 months and this increased subsidy will help accelerate consumer demand, immensely. The Government's continued support to drive adoption of EVs, with a keen focus on locally built electric two wheelers will make India the manufacturing hub of EVs."
Another Indian electric scooter manufacturer, Okinawa has announced that they will pass the full Benefit of ₹15,000/KWh to their customers. The price will be reduced in the rance of ₹7,500 to 15,000..
Jeetender Sharma, MD & Founder Okinawa Autotech on the recent announcement by the government on revision of FAME II, said, “The E2W industry is once again experiencing a positive sentiment and a high level of interest from the Government of India. The government of India's revisions to FAME-II subsidies is a welcome step that will only add zeal to the adoption of electric vehicles. Lowering the prices of electric scooters in the country will really help to persuade more riders to switch from a combustion-engined model to an electric one. We have always emphasized the importance of creating an ecosystem for EV mobility, and this new revision to the FAME II scheme is an important step in that direction."
Another company Simple Energy has announced that it will launch its flagship product in August with an affordable price tag.
Suhas Rajkumar, Founder, and CEO of Simple Energy said, "The increase in the subsidy is very exciting and positive news for the two-wheeler EV industry. Manufacturers like us will benefit as this move will significantly improve the unit economics and accelerate the EV adaption as it becomes much more affordable.
Rajkumar further added, “This will be the right push for the industry which is still considered to be at a nascent stage. Our pricing would also be affordable as the announcement has come in right before the launch of our flagship product (Simple Energy Mark 2) on 15th August this year."
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