E2Ws price after restructured FAME-II Scheme & key market drivers
We have been talking about electric vehicles high prices, FAME II scheme modified & extended, revised EV prices, for few days. This article is the continuation of the Electric two-wheeler sales FY2021 in which we have shared about 34 new models were launched, FAME II scheme modified and extended till 2024, electric two-wheeler market size. Today in this article we will be discussing the share of electric vehicles sold under the FAME-II Scheme, the impact of the lockdown on highspeed E2W registrations, key market drivers and the prices of E2Ws after restructured FAME-II Scheme. Let us now first look at E2Ws price FAME-II Scheme.
E2Ws price FAME-II Scheme
According to the JMK research & Analysis, the share of electric vehicles sold under the FAME-II Scheme as of May 2021 is 21% for electric three-wheelers, 2% for electric four-wheelers, 77% for electric two-wheelers.
Approved models and incentives availed under the FAME II scheme
Under the FAME II scheme, 33 high speed (HS) E2W models from different OEMs have been approved as of May 2021. The approved models and incentives availed under the FAME II scheme are:
Impact of the lockdown on high-speed E2W registrations
Before we go to the prices of E2Ws after restructured FAME-II Scheme, let us first look at the impact of the lockdown on highspeed E2W registrations.
The high-speed electric vehicles witnessed a growth of 47%, with 41,048 units being sold in FY2021 as opposed to 27,787 units sold in FY2020. The share of HS E2Ws in the overall E2W sales went up from 20% in FY2020 to 28% in FY2021.
Whereas the Low speed (LS) E2Ws witnessed a decline of17.9% s FY2020. But however they are most affordable, there is no need for RTO registration, etc make them attractive to the buyers even today.
Key market drivers
The industry has witnessed a strong government push over the last two years to increase EV penetration in India. This push can be observed in terms of incentives offered under the FAME-II scheme and waiving off registration fees and road tax by many states.
The rise in fuel prices has boosted E2W sales as consumers are looking for alternatives. If we take an example of Maharashtra from December 2020 to March 2021, registrations for HS E2Ws increased by 94.16% and in the same period, registrations for ICE 2-wheelers declined by 18.4%. The rise in the petrol prices increases from INR 89.16/litre to a high of INR 97.57/litre in just 3 months.
Prices of E2Ws after restructured FAME-II Scheme
|Brand||Model||Price before FAME-II Restructuring Rs.||Price after FAME-II||% Decrease|
|Hero||Optima HX (single battery)||61,640||53,600||13%|
|Optima HX (dual battery)||78,640||58,980||33%|
Also, watch the related video here
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