Two-wheeler EV makers jostle for festive-season boost amid reduced subsidies

Top electric two-wheeler makers in India are rolling out incentives for newly launched products apart from improving supplies and expanding distribution to tap the upbeat buying sentiment during the festive season as the market sees intense consolidation with a new, lower subsidy regime.

Bajaj Auto is cutting the price of its Chetak EV to Rs.1.15 lakh ex-showroom in Bengaluru and Chennai (it’s priced at Rs.1.20 lakh ex-showroom in other cities) as it looks to ramp up sales to 10,000 units a month, after having slashed the price from Rs1.45 lakh to Rs.1.30 lakh just a couple of months ago.

TVS Motor Company, which sells the popular iQube electric scooter, is advertising festive offers worth ₹10,000, including cashback. Hero MotoCorp's Vida V1 comes with benefits worth up to Rs.21,000 including a Rs.2,000 cash discount.

Leading electric two-wheeler start-ups Ola Electric & Ather Energy have announced exchange bonuses and cash discounts on their scooters to boost sales.

These efforts amid reduced FAME-II subsidies (the scheme earlier offered cash incentives of up to Rs.40,000 per electric scooter), which have triggered new 'sweet-spot' price points. Ather Energy has begun to offer a Rs.5,000 cash discount on its newly launched Ather S, its most affordable electric scooter, while Ola Electric is offering a Rs.5,000 discount on its most affordable product, the newly launched Ola S1X.

All leading two-wheeler original equipment manufacturers (OEMs) hiked prices to pass on the impact of reduced FAME-II subsidies to customers after July. Amid growing consolidation in the electric two-wheeler market, the top four OEMs – Ola Electric, TVS Motor Company, Ather Energy and Bajaj Auto – account for almost 80% of the industry's total volumes, making retail success crucial for their growth.