The country’s largest two-wheeler maker Hero MotoCorp has increased price of its electric scooter VIDA V1 Pro by around Rs 6,000 in order to offset the impact of curtailed subsidy structure on electric two-wheelers coming into effect from June 1.
The company’s flagship electric scooter VIDA V1 Pro will now be available at Rs 1,45,900 including FAME II subsidy and portable charger.
This is an increase of around Rs 6,000 from the earlier pricing.
When contacted, a company dealer confirmed the development and noted that the two-wheeler maker has absorbed the major impact of the reduction in subsidy under FAME II effective June 1, and passed on only a small fraction of the additional cost to the prospective buyers.
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A comment from the company could not be ascertained immediately.
For electric two-wheelers, the maximum subsidy cap, which was 40 per cent of the ex-factory price, has been reduced to 15 per cent by the Ministry of Heavy Industries.
As per industry sources, the FAME II revision has resulted in a subsidy reduction of around Rs 32,000 per unit.
Already, several electric two-wheeler companies have hiked prices of their electric models for sustainable operations.
TVS Motor Company has stated that in order to propel the electrification journey further in a sustainable manner after FAME II scheme revision, it has increased iQube’s price between Rs 17,000 and Rs 22,000 depending on the variant.
The iQube base and S trims were earlier priced at Rs 1,06,384 and Rs 1,16,886, respectively in Delhi.
Ather Energy said that following the FAME II subsidy revision, it has also revised the prices of its scooters with 450X now starting at Rs 1,45,000 (ex-showroom Bengaluru).
The 450X with Pro Pack now starts at Rs 1,65,435 in Bengaluru, an increase of around Rs 8,000.
Ola’s electric scooter S1 Pro is now priced at Rs 1,39,999; S1 (3KWh) at Rs 1,29,999; and S1 Air (3KWh) at Rs 1,09,999.
The product range is now roughly Rs 15,000 costlier than before.
Hero Electric said that it will not increase the prices of its popular e-scooter models.
The company said it remains dedicated to promoting the adoption of electric two-wheelers and dispelling misconceptions about their cost of ownership.
The Heavy Industries Ministry has notified that for electric two-wheelers, the demand incentive will be Rs 10,000 per kWh.
The cap on incentives for electric two-wheelers will be 15 per cent of the ex-factory price of vehicles from 40 per cent at present.
The Faster Adoption and Manufacturing of Electric and Hybrid Vehicles (FAME) India scheme commenced on April 1, 2019 for a period of three years, which was further extended for two years till March 31, 2024.