As a direct result of FAME-II subsidies for electric two-wheelers being slashed, TVS has announced a price hike for its iQube electric scooter. In a media statement, the two-wheeler manufacturer confirmed the prices of the TVS iQube will see a substantial increase with effect from June 1, 2023, with the hike set to be in the range of Rs 17,000 to Rs 22,000, depending on the variant. However, TVS hasn’t specified the exact hike for each of the two iQube variants on sale at present – the standard iQube and the iQube S.
Also Read: FAME-II Subsidy For Electric Two-Wheelers Slashed; EV Players React
Previously, the iQube was eligible for a total FAME-II subsidy of Rs 51,000. However, with the heavy industries ministry capping incentives at 15 per cent of an E2W’s ex-factory price and revising the subsidy to Rs 10,000 per kWh of battery capacity, the maximum FAME-II incentive the iQube and iQube S will now qualify for is Rs 22,500. While the difference in the subsidy totals to Rs 28,500, it appears that TVS is passing on most, if not all of the additional burden on to the buyer. Additionally, TVS will provide price protection for all iQube bookings made till May 20, 2023.
Also Read: Matter Aera Electric Motorcycle Prices Hiked By Rs 30,000 As FAME-II Subsidy Drops
Two variants of the iQube are currently on sale – the standard and the S.
“FAME-II will gradually reduce over the next few quarters. In line with TVS Motor’s commitment of being customer centric, the company will offer a loyalty benefit programme for the customers of TVS iQube who have made bookings till May 20, 2023, for a limited period to ease the cost burden post the revision in FAME II subsidy. Additionally, new customers can also avail new prices without having to bear the full burden of FAME II revision on booking the vehicle starting June 1, 2023”, said KN Radhakrishnan, Director and CEO, TVS Motor Company.
Also Read: TVS To Refund iQube Customers Who Paid Over Rs 1.50 Lakh For The E-Scooter
TVS had recently revised prices of the iQube following the controversy surrounding methods adopted by electric two-wheeler firms to claim FAME-II subsidies. The iQube, which, like a few other electric scooters, didn’t come with an offboard charger as standard up until recently, had a starting price of Rs 1.56 lakh (ex-showroom, excluding FAME-II subsidy). With the government urging manufacturers to include the charger as standard equipment, TVS added the price of the 650-watt charger to the scooter’s price, so the base iQube was priced at Rs 1.66 lakh (ex-showroom, excluding FAME-II subsidy).
Prices of all premium electric two-wheelers are on the rise following a reduction in FAME-II subsidies.
Now, with the increase in price, it is quite likely that the iQube S – which is currently the top variant in the iQube line-up – will exceed the Rs 1.50 lakh mark (on-road), with the base model likely to inch closer to Rs 1.40 lakh.
This announcement follows those from EV start-ups Matter and Ola Electric, who have also hiked prices of their offerings following the reduction in FAME-II subsidies. Starting June 1, the Ministry of Heavy Industries has reduced the subsidy available on electric two-wheelers to Rs 10,000 per kWh of battery capacity, compared to the Rs 15,000 per kWh offered up until now. Additionally, the total subsidy is now limited to 15 per cent of the E2W’s ex-factory price (which cannot exceed Rs 1.50 lakh), compared to the 40 per cent limit in place at present.
