Hero Electric cuts prices for popular models by up to 33%

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The electric two-wheeler manufacturer, Hero Electric on Friday announced a price reduction of up to 33% for its popular models following the enhancement of subsidies under the Faster Adoption and Manufacturing of Electric Vehicles (FAME II) policy in India. The company passed on the cost benefits directly to its customers as the result of the government’s increased incentives under FAME II.

Hero Electric said in a statement that the price decreases ranged from 12% for single battery models to 33% for the triple battery Nyx HX model.

After price reduction, the Photon HX model will be available at Rs 71,449 as compared to Rs 79,940 earlier. Similarly, the NYX HX (Triple Battery) will be available at Rs 85,136, down from Rs 1,13,115 earlier. Optima ER is now available for Rs 58,980 compared to Rs 78,640 previously, the company said.

“The revision in subsidies on batteries and EVs overall under the FAME policy is just the move the industry needed to drive adoption of electric vehicles,” Hero Electric CEO Sohinder Gill said. “Having had one of the best years in terms of sales despite the pandemic last year is a testimony that the market is ripe for a major push towards shifting towards a cleaner mobility solution,” he added.

Gill said Hero Electric has seen a major spurt in the adoption of its ‘City Speed Series’ — high-speed electric scooters — in the last two years and with this additional subsidy, a multi-fold increase in the sale of such models is expected.

“With such industry-friendly moves from the policymakers, we expect the market to further touch 5-7 million units on road over the next 5 years,” he added.

In the recently modified FAME II scheme, the ministry of heavy industries had increased demand incentives on electric two-wheelers to Rs 15,000 per kWh, against Rs 10,000 per kWh uniform subsidy available earlier.

Also, the government had increased the cap on the incentive to 40% of the cost of the electric two-wheeler as against 20% earlier.