Electric scooters to get costlier from April 1: Here’s why

Mar18,2024



Come April 1, 2024, potential buyers electric scooter In India there may be a need to prepare yourself for an important price hike, a possible increase of up to 10 percent. This surge, as estimated by the Investment Information and Credit Rating Agency of India Limited (ICRA), could have a significant impact on the affordability of electric two-wheelers (e-2Ws) across the country.
The impending price increase comes at a crucial time for the electric scooter market, which has been experiencing strong growth in recent times. However, the increase in upfront costs arises from new Electric Mobility Promotion Scheme 2024 (EMPS), which offers less subsidy For e-2Ws compared to FAME-II SchemeWhich is going to end on March 31, 2024.
Notably, the subsidy for electric two-wheelers has been reduced from Rs 10,000/kWh to Rs 5,000/kWh. Additionally, the maximum benefit per vehicle has been fixed at Rs 10,000.

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Despite this temporary setback, ICRA estimates that E-2W penetration is poised to reach 6-8% of the overall industry by FY 2025. Apart from this, the Government of India EV policy The scenario includes incentives aimed at promoting domestic manufacturing of electric vehicles. Notably, companies investing in EV manufacturing in India will benefit from these incentives, with hopes of players like Tesla eventually coming to our shores high.
While the exact impact on individual scooter models remains to be seen, this potential price hike could impact the affordability of electric scooters, especially for budget-conscious buyers. However, this also means that now is the right time to buy an electric scooter and make big savings before the FAME-II scheme ends.
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