- Revised, lower FAME-II subsidy applicable from 1 June, 2023
- Subsidy reduced from Rs. 15,000 previously to Rs. 10,000 per kWH
- Hero Electric keeps prices unchanged
Hero Electric has announced that it will not increase the prices of its popular e-scooter models post the recent reduction in the FAME-II subsidy. Starting 1 June, 2023, the FAME-II subsidy has been revised to Rs. 10,000 per kWh as against the Rs. 15,000 previously, with a maximum cap of 15 per cent of the ex-factory price.
The electric two-wheeler maker said in its press statement that it firmly believes affordability plays a pivotal role in accelerating the widespread adoption of electric vehicles and maintaining price stability is crucial toward achieving this goal. By keeping the prices unchanged, the company hopes to encourage a larger number of consumers to switch to electric vehicles without incurring additional costs.
Speaking about the subsidy revision, Sohinder Gill, CEO of Hero Electric, said, “The sudden and sharp tapering of subsidies does not bode well with the customer and may lead to the drop in the E2W adoption. While the industry may still clock higher sales than the last year but may not be able to keep the tempo of the exponential growth and may even fall short of the target of 2.3 million units as projected by Niti Aayog.”
The company recently launched Optima CX 5.0, Optima CX 2.0, and NYX in the Indian market. These feature Japanese motor technology that is aimed to deliver a smoother ride and German ECU technology for precise performance. Additionally, these products come with features such as remote maintenance, enhanced battery life protection, and improved charging efficiency.