Under the revised FAME II guidelines, the Government of India increased the per kWh subsidy. The electric vehicle manufacturers benefit from this subsidy which they can pass on to customers in the form of price cuts or discounts. Recently, the subsidies increased from INR 10,000 per kWh to INR 15,000 per kWh. This is a 50% increase in subsidy, which will help manufacturers lower the price of the EV and allow more customers to adopt electric vehicles.
Hero Electric has also reduced the prices of its electric scooters in the Indian market. The price drop is in the range of INR 8,491, going all the way up to INR 27,979. Thanks to the new policies, the incentive cap, earlier set to 20%, is also lifted to 40%, allowing more price control to the manufacturer. This has helped Hero Electric bring the price of its electric vehicles in the range of 12% to 33%. While the top beneficiary of the price cut is the Nyx electric scooter, the Optima and Photon HX also receive discounts.
The Hero Electric NYX HX previously came with a price tag of INR 1.13 lakh ex-showroom. The brand now retails the model at the price of INR 85,136 ex-showroom. The NYX ER, earlier priced at INR 83,940, now comes with a price tag of INR 62,954 ex-showroom. The Photon HX now comes with a price tag of INR 71,449 ex-showroom. The motorcycle came with a price tag of INR 79,940 ex-showroom. The entry-level Optima scooter now comes at the price of INR 53,600 ex-showroom. Compared to the earlier price tag of INR 61,640 ex-showroom.
The recent past announced that the company had retained the top spot in electric two-wheeler sales in 2020. The brand sold more than 50,000 battery-electric scooters in the Indian market in 2020. The brand also added over 1,500 charging points in India, which it plans to expand by 20,000 in 2022.
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