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Exclusive! Ather 450X prices slashed by Rs 14,500 as Govt increases FAME II subsidy – Financial Express

In a notification issued yesterday, the DHI said that the incentive for electric two-wheelers in the country is now being hiked from Rs 10,000 per kWh to Rs 15,000 per kWh. 

On Friday night, the Department of Heavy Industry (DHI) made some key revisions to the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme. In order to be precise, a notification issued by the Department of Heavy Industry yesterday stated that the incentive for electric two-wheelers in the country is now Rs 15,000 per kWh that was previously Rs 10,000 per kWh. As a result of these changes, the prices of electric bikes and scooters in India are set to get reduced in the coming days. Now, we have recently come to know about the price cut that the Ather 450X electric scooter is going to receive.

Watch Video | Ather 450X Electric Scooter In-Depth Review:

With the above revisions in the FAME II scheme, the electric scooter will get cheaper by Rs 14,500. Ather 450X electric scooter currently retails at a price of Rs 1,46,926 in Delhi. The said figure includes the previous subsidies along with Ather Dot/Portable charger and also performance upgrades. Now, with the aforementioned price cut due to increased subsidy on electric two-wheelers, the prices of the said EV should come down to close to Rs 1.32 lakh in the National Capital. The company’s official website though, still shows the older figures and the new prices shall be updated there soon. Needless to say, the latest price cut makes the Ather 450X even more desirable.

Also Read Ather 450X Road Test Review: Living with India’s Superhero of electric scooters

Speaking on the latest electric two-wheelers’ subsidy revision in the FAME II scheme, Tarun Mehta, CEO and Co-founder, Ather Energy said, “The revision in the FAME policy, increasing the subsidy by 50% per KWh is a phenomenal move. Sales of electric two-wheelers have grown despite the pandemic and with this additional subsidy, we expect electric two-wheeler sales to disrupt the market, and clock 6 million+ units by 2025. Ather Energy already has plans to expand distribution to 30 cities in the next 6 months and this increased subsidy will help accelerate consumer demand, immensely. The Government’s continued support to drive adoption of EVs, with a keen focus on locally built electric two-wheelers will make India the manufacturing hub of EVs.”

We recently reviewed the Ather 450X and while many may argue that the electric scooter is priced on a higher side, we believe that it is a value for money product, given the performance and features on offer. That said, the latest price decrease shall certainly help in changing the above perception. Also, the reduced prices should also help the company in attracting higher footfalls in its showrooms along with increased bookings, eventually leading to better sales. With the increased subsidies on electric two-wheelers, expect other manufacturers to announce a similar price cut for their products soon.

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