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Hero Electric not to hike price even after FAME II subsidy cut – EQ Mag

Hero Electric not to hike price even after FAME II subsidy cut – EQ Mag

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Hero Electric has announced that it will not increase the prices of its e-scooter models despite the recent reduction in the FAME II subsidy. The company said it remains dedicated to promoting the adoption of E2Ws and dispelling misconceptions about their cost of ownership.

The Government of India recently reduced the subsidy for E2Ws under the FAME II scheme, resulting in a significant price hike for these vehicles.

As a two-wheeler market, India demands affordable and sustainable mobility solutions, and Hero Electric aims to provide these to the common man. By keeping the prices of its e-scooter line-up unchanged, the company hopes to encourage more consumers to switch to electric vehicles without incurring additional costs.

Sohinder Gill, CEO, Hero Electric, said 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 sales than last year, it 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 said, “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 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 the pocket, good for the country and good for the humanity can never be pushed down indefinitely.”

Source: PTI
Anand Gupta Editor - EQ Int'l Media Network