With the help of the government, factors like the eagerness of a new segment, rising petrol prices, low cost, availability of new and different models are also attracting customers towards electric scooters. According to this report, the work of filling the gap between the ICE engine and the electric vehicle has been done by the subsidy received for it. Due to which a huge increase has been registered in the last year.
The average cost of an electric scooter in 2022 and 2023 is going to be Rs 7,500-9,500, which is much lower than its ICE competitors. This is because there is a benefit under the FAME scheme on the purchase of an electric vehicle, which is going to end in 2023. After the end of this scheme, the price of electric scooter can be up to Rs 45,000 more than before.
In such a situation, the average cost of an electric scooter can increase to Rs 18,000-20,000 between 2023 and 2025. However, after the end of the FAME scheme, hydrogen fuel and EV people can get benefit from the new PLI scheme. In such a situation, this is the right time to buy a new electric scooter, currently after the discounts from the states, the price of many electric scooters comes down to Rs 70,000.
Hero Electric, the country’s largest electric scooter vendor, is going to set up new plants to meet the growing demand for electric scooters. Hero Electric is about to set up four new electric vehicle plants in the Indian market, so the company is going to increase its production capacity to 50 lakh units. Hero Electric is going to invest 1500 – 2000 crores for this, the company is going to set up plants in West and South India. The company currently has a production capacity of 2,50,000 units.
With this production capacity, the company is not able to meet the demand of the customers and is planning to set up new plants. The demand for electric vehicles in the country has increased tremendously and especially in the electric scooter segment, there has been a rapid growth, in this segment new as well as existing auto companies are stepping into this segment. Hero Electric is currently running at number one in terms of sales in this segment.
Pawan Munjal, MD, Hero Electric said that the transition to EVs is happening at a rapid pace. He believes that 30% of the two wheeler market will be converted to EV by 2025. Along with this, he said that we are losing business, we are not able to supply. We had to stop taking online orders and also stop expanding the dealership to meet the pending orders.
Hero Electric, India’s leading electric scooter manufacturer has introduced its new electric scooter Hero AD. According to Hero Electric, the upcoming Hero AD will be priced at Rs 72,000 (ex-showroom) and will be made available in Yellow and Light Blue colours. The company says that the Hero AD has been designed for short distance commuting.
The FAME scheme has been introduced to promote EVs in the country and electric scooter buyers are taking maximum advantage of it. Now it has to be seen whether the government continues this scheme or else new customers will have to pay a higher price.