The recently announced FAME II policy amendment means big things for the electric two-wheeler sector. The amendment has brought a higher subsidy rate for electric two-wheelers from the previous Rs. 10,000 per kWh, up to now Rs. 15,000 per kWh. And this will result in electric two-wheelers getting a significant price cut in a bid to become more affordable. Following the government's notification, Ather Energy was the first manufacturer to announce that it will pass on the benefit by up to Rs. 14,500 to customers, and we now have the new prices for the Ather 450X and the 450 Plus electric scooters.
Also Read: Patent Images Of Ather Energy's New Electric Scooter Leaked
While still priced at a premium, the Ather 450 range is now more accessible than before
The 2021 Ather 450X is now priced at Rs. 144,500 while the 450 Plus will set you back by Rs. 125,490. All prices are ex-showroom, Bengaluru. Meanwhile, the electric offering gets a price cut of Rs. 13,500 in Delhi with the range now starting at Rs. 113,416 for the 450 Plus and Rs. 132,426 for the 450X. All prices are ex-showroom.
| Variant (Ex-Showroom, Bengaluru) | New Prices | Old Prices | Difference |
|---|---|---|---|
| Ather 450 Plus | Rs. 125,490 | Rs. 139,990 | Rs. 14,500 |
| Ather 450X | Rs. 144,500 | Rs. 159,000 | Rs. 14,500 |
Speaking to carandbike about the revised subsidy rate, Tarun Mehta, Co-Founder and CEO, Ather Energy said, "I think this is one of the most significant impacts on the EV industry in the last few years. The government has effectively developed the subsidy. The original cap was Rs. 30,000 and now an electric scooter can qualify for up to Rs. 60,000 of subsidy. The immediate impact for us is that it decreases our prices by Rs. 15,000, which is quite substantial. It makes electric vehicles more affordable right now."
The new pricing further reduces the delta between ICE-powered scooters and an electric scooter on sale. Speaking on about the same, Tarun said, "We were already at a place in the industry where electric vehicles had a better total cost of ownership than a petrol scooter. That was in a 2-3 year horizon. So, you had to do a little math as a customer and make assumptions around battery life and all of that to be comfortable with it. This would've basically meant that a lot of mass-market customers would've probably waited for a few more years to go electric. But this additional subsidy introduced completely eliminates that upfront delta."
Other electric two-wheeler makers are expected to announce price cuts on their respective offerings soon
"Now comparable petrol and a comparable electric scooter will have the exact same price, which is huge because it means that you can buy an electric vehicle with the same performance as a petrol scooter at the same price upfront. And given the petrol price, you will be saving anything between Rs. 1500-2000 on a monthly basis. The last push is pretty significant and will go down as a pivotal policy [for EVs]," he added further.
Also Read: Inside Ather Energy's Manufacturing Facility: 1 Scooter Built Every 4 Minutes
The new pricing does make the Ather scooters more affordable, which had seen a massive price hike with the latest update. This also means that other comparable electric scooters including the Bajaj Chetak, TVS iQube, and the Okinawa Praise will get price cuts as well, revised prices of which are yet to be announced. Meanwhile, electric manufacturers at large will greatly benefit from the policy, at least till the market for EVs picks up.
