Hero Electric Will Not Hike Prices Of Its Products Post Reduction Of FAME II Subsidy

Electric two-wheeler manufacturer, Hero Electric will not increase the prices of its e-scooter models, despite the recent reduction in the FAME II subsidy. The company remains dedicated to promoting the adoption of E2 Wheelers and dispelling misconceptions about their cost of ownership. 

The Government of India recently reduced the subsidy for electric two-wheelers under the FAME II scheme, resulting in a significant price hike for electric two-wheelers. However, Hero Electric firmly believes that affordability plays a pivotal role in accelerating the widespread adoption of electric vehicles, and maintaining price stability is a crucial step toward achieving this goal. 

By keeping the prices of its e-scooter line-up unchanged, the company hopes to encourage a larger number of consumers to switch to electric vehicles without incurring additional costs. 

Sohinder Gill, CEO of Hero Electric, commented on the company's decision, stating, the sudden and sharp tapering of subsidies does not bode well with the customer and may lead to a drop in the E2W adoption. While the industry may still clock higher sale than the last year but may not be able to keep the tempo of the exponential growth and may even fall short of the target of 2.3 million units as projected by Niti Aayog. 

He further added, "Despite the extreme financial crunch forced upon us due to subsidies stuck with MHI for over 15 months, we will continue to do our bit in offering affordable mobility solutions to the discerning customers by holding on to our current prices till we can. In our 15 years of business we have time and again been facing a lot of headwinds from those who do not want “affordable electric mobility’ to become a popular choice of the customers, but we know for a fact that a mobility solution that is fundamentally so good for pocket, good for the country and good for the humanity can never be pushed down indefinitely”. 

Hero Electric current portfolio includes Optima CX 5.0, Optima CX 2.0, and NYX. These vehicles are built to withstand diverse Indian weather conditions, even in remote areas. Additionally, they come with features such as remote maintenance, enhanced battery life protection, and improved charging efficiency.