June 24, 2024

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Price rises for Ola S1 following FAME-II subsidy reduction
Price rises for Ola S1 following FAME-II subsidy reduction

Price rises for Ola S1 following FAME-II subsidy reduction

Due to a 15 percent subsidy cap, India’s best-selling e-scooter has seen a 30 percent price increase


 

  • Ola S1, available for Rs 1.15 lakh recently, is now priced at Rs 1.3 lakh (ex-showroom).
  • Ola S1 Pro is up to 15,000 rupees
  • Other premium electric scooters will also see a substantial price increase shortly

It has been reported that the Ola S1, India’s best-selling electric scooter, is now 30 percent more expensive than a few weeks ago. Under the FAME-II scheme, the government recently reduced subsidies for electric two-wheelers (E2Ws). This has resulted in Ola Electric increasing the Ola S1 price incrementally over the last few days. It was previously available for Rs 1.15 lakh but is now available for Rs 1.30 lakh. The Ola S1 Pro also increased from Rs 1.25 lakh to Rs 1.40 lakh (all showroom prices, including the revised FAME II subsidy). 

As the S1 Pro has a 4kWh battery, it was previously eligible for subsidies totaling Rs 59,550 under the FAME II regime. However, as the Ministry of Heavy Industry capped the subsidy at 15% of the E2W factory price and increased the subsidy to INR 10,000 per kWh of battery capacity from 1 June, the maximum subsidy for the S1 Pro is now 2. 2,268 rupees. Similarly, the total subsidy for the S1 was reduced from Rs.44,700 to Rs.20,678. As a result, the street prices of the S1 and S1 Pro in Mumbai increased to INR 1.45 lakh and INR 1.55 lakh respectively. 

This follows a similar price increase for the Matter Aera electric bike. The Aera will begin selling in early 2023 at Rs 1.44 lakh for the 5000 model and Rs 1.54 lakh for the 5000+ model. However, the startup announced that the Aera 5000 will be priced at INR 1.74 lakh and the Aera 5000+ will be priced at INR 1.84 lakh (excluding showrooms) from June 6th. As a result, the Aera, originally conceived as a sporty alternative to petrol-powered commuter bikes, will cost him over Rs 2,000 on the open road. 

Other major manufacturers such as Ather Energy, Bajaj Auto, TVS, Hero MotoCorp (Vida), and Tork Motors are also expected to announce price increases for battery-powered models soon.

The Ola S1 was crucial to Ola Electric. The introduction of the cheaper S1 variant led to a sustained increase in sales by electric vehicle startups. This allowed the company to leap to the top of its E2W sales chart and maintain market leadership for several months. Ola Electric appears to have had a successful marketing campaign to encourage customers to buy the S1 and S1 Pro ahead of a looming price hike. More than 26,000 units were sold in May, according to VAHAN registration data. This is Ola’s highest monthly sales ever.

Ola Electric has already announced plans to introduce a smaller 2kWh battery for the S1, which could lower the entry price. On top of that, Ola is also preparing to launch a more affordable electric scooter in the form of the upcoming S1 Air. A more basic version of the S1 with different specs, the S1 Air comes with 2kWh, 3kWh, and 4kWh battery options. Pricing (in front of the showroom) has already been confirmed between Rs 85,000 and Rs 1.1 million.

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