Amaan AhmedJune 12, 2021 05:11:08 AM IST
In what is presented as a major boost for the electric two-wheeler industry in India, the Department of Heavy Industry (DHI) has made vital revisions to the Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles II scheme ( FAME II) that Reduce the prices of electric scooters and motorcycles in the country and convince more drivers to switch from a combustion model to an electric one. In a notice issued on Friday evening, the DHI said the incentive for electric two-wheelers is rising from the current Rs 10,000 per kWh to Rs 15,000 per kWh.
While that may seem like a nominal increase, another point mentioned in the notification makes this move even more significant. The incentive cap for an electric two-wheeler is now capped at 40 percent of its price, double the previous cap of 20 percent. What this means is that an electric two-wheeler with a 1 kWh battery will receive an incentive of Rs 15,000; one with a 2 kWh battery will be eligible for an incentive of Rs 30,000 while one with a 3 kWh battery pack will be eligible for an incentive of at least Rs 45,000 (provided its factory cost is greater than Rs 1 lakh e less than Rs 1.5 lakh). This move will result in the prices of all electric two-wheelers being drastically reduced by a considerable margin.
Shortly after the notification was issued, electric scooter maker Ather Energy shared a tweet confirming that the price of the Ather 450X will drop by another Rs 14,500, bringing its price down to Rs 1.44,500 as the company is transferring the price. full benefit to buyers.
– Other energy (@atherenergy) June 11, 2021
In total, the Ather 450X is eligible for an incentive of Rs 43,500 under the revised FAME II scheme, and a similar incentive should also be available for the Ather 450 Plus, which would bring its price down to Rs 1.25,500 (all prices except showroom, Bengaluru). Prices for other existing electric scooters and motorcycles, including those from major manufacturers such as Bajaj Chetak, TVS iQube, Revolt RV300 / RV400, and those from Hero Electric, Okinawa and more, will also see a substantial drop soon.
To date, more than 76,000 electric vehicles have benefited from the benefits of Phase II of the FAME India program, of which almost 59,000 are electric two-wheelers; With the increased incentives, the authorities have clearly decided to give this segment a stronger push to accelerate the adoption of electric vehicles in the country. This review will also help manufacturers of electric two-wheelers launch more affordable models with larger batteries in the future.
In a tweet apparently commenting on this development, Tarun Mehta, co-founder of Ather Energy, called the move a “demonetization moment for the electric vehicle industry.”
Damn demonetization moment for the electric vehicle industry ⚡️🚀🚀🚀
– Tarun Mehta (@tarunsmehta) June 11, 2021
India’s electric two-wheeler market is rapidly gaining pace and more players are ready to enter the fray soon. Ola Electric’s first e-scooter will be launched in the coming months, and Hero MotoCorp has partnered with Taiwan’s Gogoro to develop a battery-sharing network for electric two-wheelers in India, as the largest manufacturer of vehicles in India. Two Wheelers of the World is preparing to enter the electric scooter segment in 2022.