Price Hike for Ather E-Scooters due to Reduction in FAME 2 Subsidy

 The recent reduction in the FAME 2 (Faster Adoption and Manufacturing of Electric Vehicles) subsidy by the Central Government has resulted in an increase in the prices of Ather e-scooters. This subsidy reduction affects the affordability of electric vehicles, as it has reduced the subsidy benefit from Rs 15,000 to Rs 10,000 per kilowatt-hour (kWh), with a maximum cap of 15 percent instead of the previous 40 percent of the ex-showroom price. Consequently, Ather e-scooters and other electric vehicles have experienced a significant price surge.

Ather E-Scooter Price Comparison

Let us take a closer look at the price changes in specific Ather e-scooter models:

1. Ather 450X Without Pro Pack:

• Old Price: Rs 1,16,379
• New Price: Rs 1,46,664
• Difference: Rs 30,285

2. Ather 450X (Gen 3 Pro Pack):

• Old Price: Rs 1,46,743
• New Price: Rs 1,67,178
• Difference: Rs 20,435

Impact on Ather 450X (Pro Pack)

With the revised FAME 2 subsidy, the Ather 450X (Pro Pack) has become more expensive by Rs 20,435. While the subsidy was never intended as a long-term solution, it did play a crucial role in significantly reducing the upfront purchase cost for consumers.

Effect on Other Brands: Ather Energy is not the only brand affected by this subsidy reduction. TVS, another prominent player in the electric scooter market, has also increased the prices of its iQube and iQube S models. Furthermore, Ola Electric has not only revised the pricing of its S1 lineup but has also removed a few variants within its S1 electric scooter range.

Conclusion:

The reduction in the FAME 2 subsidy by the Central Government has led to a price hike for Ather e-scooters. The subsidy benefit has been reduced to Rs 10,000 per kWh, with a maximum cap of 15 percent, resulting in increased upfront costs for electric vehicle buyers. It is important to consider these changes while evaluating the overall cost of purchasing and owning an electric scooter in the current market scenario.