Currently, electric 2W vehicles sell around 65,000+ units a month – Price hikes could affect sales numbers negatively
Rising fuel prices has been one of the primary drivers of 2W EV revolution India. That said, multiple other factors contributed in this regard as well. One of the biggest factors is the Indian Government’s FAME II subsidy.
Established in 2019, this FAME II subsidy scheme has lessened the financial burden on EV buyers. But things did not go as planned and there are going to be consequences. Come June 1st, 2023, there will be revisions in this subsidy scheme which will affect the prices considerably. Let’s take a look.
Electric Scooters To Cost More From June 1st
Currently, eligible EVs attract a subsidy of Rs. 15,000 per kWh, with a threshold of 40% of the ex-sh price on incentives. This benefitted prospective EV buyers greatly and attracted a lot of interest.
With the recent revision in the FAME II subsidy scheme from June 1st, 2023, these incentives will be reduced. Subsidy price is reduced to Rs. 10,000 per kWh battery, instead of Rs. 15,000 before. And the threshold for incentives is reduced to 15% of ex-sh price, instead of 40% before the amendment.
Ather 450x, Tork Kratos to cost more
Ather Energy has announced that customers who book an electric scooter now, will be eligible for the existing subsidy rates. This means that they will be able to save up to Rs 32,500. Ather has also said that this offer is valid only for limited period and limited stock
Tork too has made a similar announcement. Buyers of Tork Kratos electric motorcycle before 1st June 2023 will be eligible for saving up to Rs 40,000. Interested buyers need to reserve Kratos and Kratos R for Rs. 2,999 before May 31st, 2023. Below is the announcement made by Tork;
“Act quickly to secure the electrifying ride with Kratos R before the upcoming price hike of ?40,000/-. Ensure you don’t miss out on this amazing chance to own the Tork Kratos R with the lowest down payment of ?18,000/-. Hurry up! as this offer is only valid for a limited number of bikes and until May 30th, 2023. For further information, please contact us at ? 1800 3130 231. Seize the moment and reserve your spot for the thrilling Kratos R @ Just ?2,999/-.”
Other electric scooter and electric motorcycle makers are also expected to make similar announcements. Will the new amendment in the FAME II subsidy scheme result in reduced sales of electric two wheelers? Or will prospective buyers continue to shift to EV realm regardless of price hike? Only time will tell.
Source: Bike - rushlane.com
