The electric scooter market in India witnesses a surge in prices effective April 1, attributed to the implementation of the Electric Mobility Promotion Scheme (EMPS) by the Government of India.
The EMPS replaces the previous FAME II subsidy scheme, offering reduced benefits to manufacturers.
Subsidy Dilemma: FAME II vs. EMPS
Under the new EMPS, electric scooter manufacturers face a subsidy cap of Rs 10,000 per unit, significantly lower than the benefits provided by FAME II.
This policy shift prompts leading manufacturers such as Bajaj, TVS, Ather, and Hero Vida to announce price hikes for their electric vehicle range.
Bajaj, TVS, Ather, and Hero Vida Lead Price Surge
Bajaj Auto: The price of the Chetak EV sees an increase of Rs 8,000 for the Urbane variant and Rs 12,000 for the Premium variant.
TVS: Prices of the iQube and iQube S models rise by Rs 3,000 and Rs 6,000, respectively.
Hero Vida: V1 Pro’s price climbs by Rs 4,000, while V1 Plus sees a Rs 5,000 increase.
Ola Electric Offers Temporary Relief
Customers of Ola Electric have until April 15, 2024, to purchase e-scooters at the old prices before the impending price hike.
Ather Energy Implements Significant Increases
Ather Energy implements substantial price hikes, with the 450S model seeing the highest increase of Rs 16,000.
The Ather 450X prices also see adjustments, with the 3.7kWh variant experiencing a Rs 10,000 surge.
State Subsidies Add Another Layer of Complexity
It’s noteworthy that alongside EMPS, state subsidies vary across regions, with some states offering additional incentives while others do not.
The new prices of electric scooters include EMPS subsidy and charger costs, with state-specific subsidies added separately.
