Electric two-wheelers may get costlier from June 1, 2023 with manufacturers resorting to price hikes as the FAME II subsidy cuts kick into effect.
Ola Electric revised its price upwards by Rs 15,000 for all scooters, while electric bike manufacturer Matter increased it by Rs 30,000. Ather Energy has also raised the prices for its EV scooters, YourStory learned.
The Ministry of Heavy Industries (MHI) said earlier this month that it would reduce consumer subsidies provided to buyers under the ambit of the FAME-II (Faster Adoption of Manufacturing of EVs) programme.
For electric two-wheelers, the maximum subsidy cap, which was 40% of the EV two-wheeler’s ex-factory price, was reduced to 15%.
That has led a number of EV two-wheeler companies, including , , and , to hike the prices of their vehicles.
has said it will not increase the prices of its scooters as it “remains dedicated to promoting the adoption of electric two-wheelers and dispelling misconceptions about their cost of ownership.”
“The company firmly believes that affordability plays a pivotal role in accelerating the widespread adoption of electric vehicles, and maintaining price stability is a crucial step toward achieving this goal,” it said in a statement.
According to a few sources familiar with MHI’s internal deliberations, the subsidies were reduced so that more people could benefit and adopt EVs.
However, industry bodies have been largely dissatisfied with the government’s dispensation of the subsidies.
The Society of Manufacturers of Electric Vehicles (SMEV) has, time and again, said that the government has not reimbursed the subsidies it owes manufacturers, which has led to a serious liquidity crisis across the board.
Greaves Cotton, an EV manufacturer, recently saw its shares slump nearly 10% after the government asked it to return subsidies worth Rs 124 crore because it failed to adhere to some FAME II guidelines.
