Hero MotoCorp, the country’s largest two-wheeler company, has raised the price of its electric scooter, Vida V1 Pro, by approximately Rs 6,000 due to the reduction in subsidy on electric two-wheelers.
The revised price came into effect from June 1. With the inclusion of the FAME-2 subsidy and portable charger, the flagship electric scooter Vida V1 Pro is now priced at Rs 1,45,900, reflecting an increase of around Rs 6,000 from its previous price.
A dealer from the company confirmed that most of the burden resulting from the subsidy reduction under FAME-2 has been absorbed by Hero MotoCorp itself, with a limited burden passed on to the customers.
The company has not yet issued an official response regarding the price increase.
Impact of Government’s Subsidy Reduction
The Ministry of Heavy Industries recently announced a reduction in the maximum subsidy limit for electric two-wheelers (ex-factory price) from 40 percent to 15 percent.
This revision in the FAME-II scheme has led to a decrease in the subsidy amount by approximately Rs 32,000 per unit.
Several electric two-wheeler manufacturers have already raised the prices of their electric models in response to the subsidy reduction.
For instance, TVS Motor has increased the price of its iCube model by Rs 17,000 to Rs 22,000, depending on the variant, following the revised subsidy policy.
Hero MotoCorp’s Sales Rise by 7% in May 2023
Hero MotoCorp reported a year-on-year increase of seven percent in wholesale sales for May 2023, with a total of 5,19,474 units sold.
In comparison, the company sold 4,86,704 units during the same period last year. Domestic sales for the month stood at 5,08,309 units, reflecting growth from 4,66,466 units in May 2022.
However, exports declined to 11,165 units during the period under review, down from 20,238 units in the corresponding period last year.
