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2W EV manufacturers launch retail incentives to compensate for decreasing subsidies
Leading manufacturers of
electric two-wheelers
are launching retail incentives in an effort to capitalise on the positive consumer mood around purchases over the holiday season, despite increased consolidation and reduced subsidies.In Bengaluru and Chennai,
Bajaj Auto Ltd
. is selling the Chetak EV for ₹1.15 lakh ex-showroom, whereas in other locations, it is priced at ₹1.20 lakh ex-showroom. After lowering pricing from ₹1.45 lakh to ₹1.30 lakh a few months ago, the business hopes to increase sales to 10,000 units per month.The well-known
iQube electric scooter
manufacturer, TVS Motor Co., is promoting holiday deals totalling ₹10,000, which include a cashback incentive. Benefits of ₹21,000 are available for Hero MotoCorp's Vida V1, which includes a ₹2,000 cash discount.In an attempt to promote their new products and variations in the wake of lower FAME-II subsidies, leading electric two-wheeler firms
Ola Electric
and Ather Energy introduced exchange bonuses and cash discounts on their scooters (which previously gave cash incentives of up to ₹40,000 per electric scooter). Additionally, this has led to the creation of a new price point "sweet spot" in the market.While Ola Electric is providing ₹5,000 off its Ola S1X, which is also its most accessible product, Ather Energy is offering ₹5,000 off its recently released Ather S, its most cheap electric scooter on the market. By the conclusion of the holiday season, Ather anticipates that its sales will have returned to pre-subsidy levels.
“As the holiday season got underway in October, we saw a sharp rise in questions and test rides. We presented attractive incentives for consumers who were interested in upgrading to Ather scooters in order to further accelerate this momentum throughout the holiday season. Until November 15th, these deals are valid countrywide for the
450X
and 450S,” according to Ather Energy Chief Business Officer Ravneet Phokela.The market is still getting more consolidated. By the end of the holiday season, we anticipate that the market will return to pre-subsidy levels."
Ola Electric said that after the release of the S1 X+, its most affordable model to date, more people are visiting its experience centres. "We have seen an incredible increase in sales between Navratri and Dussehra.
Selling a scooter around 2.5 times as often as it did a year ago, according to founder and CEO Bhavish Agarwal's post on X. He did not, however, specify how long it had been tracking the pattern.
Because of the impact of decreasing FAME-II subsidies after July, all of the top two-wheeler OEMs were forced to immediately release cheaper variations and hike pricing. Since the top four companies in the e-2-wheeler market—TVS Motor, Ola Electric, Ather Energy, and Bajaj Auto—account for over 80% of industry volumes amid rapid market concentration, retail success is essential for expansion.
Following difficulties due to reduced subsidies, the electric two-wheeler sector is again seeing signs of revival as new, affordable models are being introduced by firms.
A total of 63,716 high-speed electric two-wheelers were sold in September, up 20% from the same month last year and 2% from the previous month, according to statistics from the government's Vahan database, which keeps track of vehicle registrations. "Demand has somewhat slowed with supply improving and prices rising with the removal of FAME-II subsidies. There are some reductions available in the market because all of the top two-wheeler OEMs have not yet introduced a new batch of cheaper models, according to Elara Capital analyst Jay Kale.