India one of the leading electric two wheelers manufacturing company Hero Motocorp is offering the same price cap after the government subsidy stopped after June 1. The Hero e-mobility is clear that they will not increase the on their electric two wheelers. Some people don’t know that the central government announced the FAME-ll subsidy will be reduced from June month for electric two wheelers.
That’s the reason, the entire electric two wheeler segment price is hiked. Hero electric knows that no price hike may be beneficial for the company as well as the customers. So, most of the two wheeler manufacturing companies understand not to increase the price after the subsidy is reduced.
Why does Hero Electric not want to increase the electric two wheelers price?
People may have thought about buying electric two wheelers before the FAME-ll subsidy stopped. But Hero electric, one of the companies in India, reported that they will not increase the price on their products. The reason behind the step as stated by the automaker is that it remains committed to encouraging the use of electric two wheelers and addressing misconceptions regarding their ownership costs.
There is no doubt a two wheeler market in India. Where Hero electric claims that It wants to fulfill the needs the Indian customers demand. The company wants to contribute to expensive and environmentally friendly e-vehicles across the country.
The effect of FAME-ll subsidy
India’s heavy ministry has cut the FAME-ll subsidy, raising the price of electric vehicles. The government has reduced the subsidy from 40% to 15%. Subsidies for electric two wheelers have been reduced from Rs 15,000 to Rs 10,000 per kWh battery capacity. For this reason, Ather electric scooter is currently available at Rs 1.28 lakh (ex-showroom, Bengaluru).
Most of the Indian customers demand an electric scooter which offers 80 km range and at least 40 kmph top speed.