Electric Two Wheeler Companies Reduce Prices to Increase Their Sale

Electric two wheeler companies have reduced prices of their electric scooter models to boost sale volume. Apart from this, government initiatives can give a push to the adoption of electric two-wheelers in India. Significant price cuts and the launch of affordable models by major players have helped reduce the gap between the prices of battery-powered and petrol-run two-wheelers. Last week, Ola Electric has reduced prices of its entry-level scooter by ₹25,000, and now its price is equivalent to Honda Activa.

Sales have remained strong despite the reduction of the EV subsidy from 40% to 15% of the ex-factory price under the FAME India Scheme Phase-II. Sales have been increasing and expect to reach around 8,50,000 units in fiscal 2024, electric two wheelers still account for just 4.5% of the market. The main hurdles for adoption to cleaner mode of mobility is higher acquisition cost in comparison to petrol powered-models. Inadequate charging infrastructure also has been a reason for people not easily shifting to electric vehicle.