Why Electric Two-Wheels are Suddenly Going Cheaper in India?
The price-sensitive Indian market and its patrons have never been pleased with the hefty price tags of the electric two-wheelers. However, in 2021, the scenario has witnessed a positive change
Around seven or eight years ago, the Indian automobile industry welcomed electric vehicles in the country. Several firms began to produce electric two-wheelers, and a few ventured into the four-wheeler’s segment. However, the price-sensitive Indian market and its patrons have never been thrilled with the colossal price tags of the electric two-wheelers. Fast forward to 2021, the scenario has witnessed a positive change; thanks to the revised Faster Adoption and Manufacturing of Hybrid and EV (FAME) scheme.
In the last few days, several electric two-wheelers have undergone a substantial price-cut because the government of India has increased the incentive demand for electric two-wheelers up to INR 15,000 per kWh. Earlier, under the same FAME scheme, the incentive demand was INR 10,000 per kWh. Therefore, electric two-wheelers in the Indian market have suddenly become affordable to many consumers. The government of India has taken this step because it wants to swing the nation into an electric vehicle nation by 2030.
Reflecting on the step chosen by the government, Sohinder Gill, the Director-General of the Society of Manufacturers of Electric Vehicles (SMEV) said, “It’s an important and an admirable decision taken by the government, a move that will bring down the prices of electric two-wheelers nearer to the ICE (internal combustion engine) vehicles and remove one of the biggest blockades of the high sticker price of electric two-wheelers.”
Gill further added, “A ‘city speed electric scooter’ with a range of 100km/charge will now cost less than ₹60,000 and a high-speed scooter with a range of 80 km will come nearer to the price tag of ₹1 lakh. Together with the other important factors like extremely low running cost, low maintenance and zero-emission, such price levels will surely spur a substantial demand for electric two-wheelers.”
After the revision of the scheme, several electric vehicles have obtained a huge cut in their price tags. To give the readers an idea, the TVS iQube has received a price cut of over INR 11,000 whereas the price tag of the Ather 450X has been lowered by INR 14,500. In the electric motorcycle segment, Revolt RV400 has noticed a shortening of INR 28,000. In the weeks to come, we foresee a dip in the prices of the rest of the electric two-wheelers available in the Indian market.