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Ampere Magnus Pro electric scooter
Ampere Magnus Pro electric scooter

FAME II subsidy: Ampere reduces prices of its electric two-wheelers

  • Ampere electric scooters will now cost up to 9,000 less than earlier.

  • The revised FAME II scheme offers 50% more subsidy at 15,000 per kWh on electric bikes and scooters in India.

After the Centre decided to increase subsidy on electric two-wheelers in India under the FAME II scheme, several EV makers have started to revise prices of their vehicles. Greaves Cotton's e-mobility arm Ampere Vehicles joined the list on Friday. It announced reduction in prices of its scooters by up to 9,000.

Ampere has announced that the revised price of its Zeal model will now be 59,990 (ex-showroom Bengaluru) against 68,990 earlier. The Magnus Pro model will now cost 65,990 (ex-showroom Bengaluru), down from 74,990 previously after the revised FAME II subsidies.

Roy Kurian, chief operating officer for e-mobility business (two-and three-wheelers) at Ampere Electric, said, "With significant subsidy revision in FAME-II policy, the scheme makes EV (electric vehicle) affordable, as more and more customers can now go for it."

Previously, Ather Energy was the first to reduce the prices of its models after the FAME II subsidy revision kicked in. Ather reduced price of its models by as much as 14,500. "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," said Tarun Mehta, CEO and Co-founder of Ather Energy.

Later, other electric two-wheeler manufacturers, like Hero Electric, Okinawa and TVS, have also announced a price decrement for their battery-powered models in India.

A week ago, the government decided to amended the FAME II scheme, which extends the subsidy amount for the electric two-wheelers that meet the criteria. The amount of subsidy under the scheme, which was launched in 2019, has been revised under the new FAME II scheme which offers 50% more subsidy at 15,000 per kWh.

Two-wheelers, especially the e-scooters, are the largest beneficiary of the 10,000 crore subsidy earmarked in the FAME-II scheme. However, not every electric two-wheeler benefits from this scheme. According to a report by CRISIL, around 95% of the electric scooters in India are not eligible for the FAME-II subsidy.

  • First Published Date : 19 Jun 2021, 09:22 AM IST