FAME subsidy cut: Prices up over 21%, e2W sales more than halve in June

Among the brands, Ola Electric raised prices by 38%, Ather Energy by 70%, TVS iQube by 62% and Ampere by 69%

The revision in FAME II subsidy by the government has led to a steep price hike of about 21 per cent in electric two-wheelers across brands, said a report by JMK Research on Wednesday. Industry expects consumers to look for ICE counterparts or low-speed electric two-wheelers due to the surge in prices.

In June 2023, the retail sales of high-speed electric two-wheelers in India amounted to 45,734 units--a significant month-on-month decline of over 55 per cent. Among the brands, market leader Ola Electric revised its prices up by 38 per cent, Ather Energy by 70 per cent, TVS iQube by 62 per cent and Ampere by 69 per cent.

Prices soared after the government reduced FAME-II subsidy on electric two-wheelers registered on or after June 1 this year. For electric two-wheelers, the demand incentive is now Rs 10,000 per kilo watt hour. Earlier it was Rs 15,000 per kWh. Furthermore, the incentive cap has been scaled down from 40 per cent (before June 1, 2023) of the E2W’s ex-factory price to 15 per cent. Here is a look at how the prices changed after the FAME subsidy faded out and sales dipped in June owing to this.