E-scooter News: Indian Electric Scooter Makers Cut Prices
Electric scooter manufacturers in India slashed prices aggressively as competition intensified in the most populous country’s EV market.
Electric scooter manufacturers in India slashed prices aggressively as competition intensified in the most populous country’s electric vehicle (EV) market.
In recent months, prominent electric two-wheeler (E2W) makers in India announced considerable price cuts for their offerings, intending to accelerate the shift from traditional internal combustion (IC) engine-powered scooters.
Bhavish Aggarwal-led Ola Electric reduced the prices of its S1 electric scooter series models by up to ₹25,000.00 ($300.00). Likewise, Ather Energy lowered the price of its 450S model by ₹20,000.00 ($240.00). Other brands that slashed prices by 15–17% include the Bajaj Auto-owned Chetak Technology, Okinawa Autotech, Ampere Vehicles, and Hero Electric.
India’s EV market is expected to grow to $34.80 billion in 2024 and $110.74 billion in 2029, marking a CAGR of 26.05%. In particular, the E2W sector reported sales of 81,608 units in January, pointing to a 26.00% increase from the previous month.
The relatively high acquisition cost compared to gasoline-powered scooters and motorcycles is India’s most significant hurdle to the EV revolution. The Price cuts narrowed the price disadvantage of e-scooters compared to petrol-powered scooters from 80.00% to 60.00%.
India’s push toward transitioning to electric scooters is part of its broader strategy to improve last-mile transportation solutions, facilitating increased economic activity. Last year, India expressed its intent to overtake China as the world’s second-largest economy by 2030 as its workforce enters prime age.
Electric Scooter Subsidy in India
In addition, the Indian government grants consumers a 15.00% rebate for electric scooter purchases, limited to ₹10,000.00 per kWh of battery. This subsidy is part of the government’s efforts to reduce air pollution and dependence on fossil fuels. Moreover, only personal electric vehicles (PEVs) that use lithium-ion or superior battery technology qualify for the subsidy, as these are considered more environmentally friendly and efficient.
New Delhi also strengthened its push for performance scooters over budget ones. Hence, qualifying for rebates requires a minimum top speed of 40 kph (25 mph) and a minimum single-charge range of 80 kilometers (50 miles).
Lastly, 50.00% of the e-scooter’s components must be locally sourced based on Phased Manufacturing Program (PMP) standards. These standards were introduced to promote domestic manufacturing and job creation in the EV sector. The cash-back scheme applies to lump sum and installment payments, providing further incentives for manufacturers to comply with the PMP standards.
