From this date, the Ather 450X will be more expensive.learn more

Customers who buy Ather Energy’s 450X e-scooters through May 31 can save up to ¥32,500. Ather Energy CEO Tarun Mehta retweeted the same tweet, saying that the electric vehicle industry must stand on its own as soon as possible instead of relying on government subsidies to support development.He mocked how the government announced subsidies ¥30,000 electric two-wheelers in 2019, then double to ¥60,000 in 2021, then cut to ¥22,000 in 2023. It has been a rollercoaster ride for the Indian electric two-wheeler industry, Mehta said. He also mentioned that the subsidy amount will inevitably drop.

ALSO READ: Ather 450X Pro Pack: Here’s what the Pro Pack has to offer

The price increase comes as the Ministry of Heavy Industries has proposed a 15% subsidy on electric two-wheelers, which has resulted in price hikes for all electric two-wheelers that were ever subsidized in India, thus far. Last week, a total of 24 electric two-wheeler manufacturers receiving FAME-2 subsidies met to discuss future strategies.

Incentives for electric two-wheelers under the FAME scheme have been a major driver of the electric vehicle industry in India over the past few years. Combined with the incentives of the FAME program, buyers in some states also benefit from their respective state electric vehicle policy incentives, which significantly reduces the upfront cost of electric two-wheelers. No wonder, so far, this has boosted the growth of electric two-wheelers across the country. However, as FAME-2 incentives are cut and EV manufacturers increase the prices of their electric two-wheelers, it remains to be seen how the industry and EV customers will respond to the impact.

First published date: May 22, 2023 at 08:54 AM CST