Ola Electric Slashes Scooter Prices Despite Lower Subsidy Regime
Ola Electric has lowered prices of entry-level scooters by up to Rs 10,000, despite lower subsidy under the Electric Mobility Promotion Scheme 2024.
Ola Electric Mobility Pvt. has reduced the prices of its entry-level scooters, despite a lower subsidy regime that came into effect on April 1. Prices of Ola Electric scooters now start at Rs 69,999, as against Rs 79,999 earlier. The Ola S1 2 kWh, 3 kWh and 4 kWh variants are now priced at Rs 69,999 (introductory), Rs 84,999, and Rs 99,999, respectively, as against Rs 79,999, Rs 89,999 and Rs 1.10 lakh, respectively, according to a company statement on Monday.
The prices of S1 X+, S1 Air and S1 Pro remain unchanged at Rs 89,999, Rs 1.05 lakh and Rs 1.30 lakh, respectively.
“We believe that India’s EV industry has reached an inflection point with the EV penetration in the two-wheeler segment at an all-time high last month,” an Ola spokesperson said in the statement. “Our S1 X portfolio now addresses the high upfront cost of EVs, which is one of the major barriers to EV adoption. With new prices for the S1 X and a wide product portfolio, we are confident of driving EV penetration further across the country.”
All Ola scooters come with an eight-year or 80,000-km battery warranty.
The price revision is significant, for it comes a fortnight after the implementation of the Electric Mobility Promotion Scheme 2024 on April 1.
The new scheme, with a total outlay of Rs 500 crore over four months, will support 3,33,387 electric two-wheelers, with an incentive of Rs 5,000/kWh not exceeding Rs 10,000 per unit. That’s lower than the Rs 15,000 subsidy that electric two-wheelers enjoyed under the second phase of the Scheme for Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles. The FAME-II scheme, which received multiple extensions, expired on March 31.
Sales of electric two-wheelers surged 30.06% over the previous fiscal to 9,74,087 units in the financial year ended March 31, according to data released by the Federation of Automobile Dealers Associations.
Ola Electric accounted for 3,29,237 units, or about 35% of the overall electric two-wheeler market in FY24.