EV players like anther, Okinawa, Pure EV, simple energy And traditional two-wheeler makers such as TVS Motor Company, Hero Electric and Bajaj Ltd are retailing e-scooters in the range of Rs 70,000 to Rs 1.13 lakh, aided by state subsidies.
Models like Ather 450X/Plus, Okinawa Praise, Pure EV Pluto, Simple Energy One, TVS iQube and Bajaj Chetak are witnessing interesting price volatility.
Ola said that its S1 and S1 Pro models will be sold for Rs 99,999 and Rs 129,999 respectively.
Experts said the current players in the e-scooter space are sticking to their price points despite the competitive pressures.
He added that the Indian electric two-wheeler segment is currently dominated by a handful of players and Ola’s entry has further enhanced the e-scooter landscape.
India has the potential to become a global EV manufacturing hub and Ola’s EV ambitions depend on its make-or-break pricing.
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Affordability can help it gain scale in a vehicle segment where the price of scooters with conventional engines ranges from Rs 75,000 to Rs 80,000.
At the time of
Announce the price of its e-scooter in AugustOla’s chief executive officer Bhavish Agarwal had said that low running costs and affordable maintenance can help it take on traditional two-wheeler manufacturers.
VG Ramakrishnan, MD, Avantem Advisors said, “Ola’s scooter pricing comes from a known disruption. Competition will have to compete with it on pricing, technology and efficiency as its USPs for the e-scooter.” “Ola has managed to establish its brand and efficiently sourcing it to supply large quantities.”
Okinawa Managing Director Jitendra Sharma said EV firms will compete on technology and performance besides price.
“The benchmark is the Honda Activa and it should be easy to convert to an e-scooter. Consumers are preferring e-vehicles due to lower operating costs,” Sharma said.
Ather Energy CEO Tarun Mehta said automotive buyers do not make the buying decision “by small price delta”.
The market is poised to grow and will pick up in the next few years.
ETtech“Unlike the traditional engine two-wheeler market, the EV industry is only 1% of the segment and artificially reducing prices will not help growth but will only lead to further cash burn, which is not in the interest of any player,” it said. Happened. Naveen Munjal, MD, Hero Electric, is one of the early entrants in this segment, which sells its e-scooters in the Rs 60,000 to Rs 70,000 price bracket.
Manufacturers said that many e-scooter models have seen a sharp reduction in prices as various state subsidies have been passed on to the customers, making the products affordable. “Our prices have come down because of the state subsidy,” Mehta said.
The price war comes in the backdrop of the government’s decision to increase the subsidy on electric two-wheelers by 50% to Rs 15,000 per kWh under the government’s FAME II scheme, which came into force in 2019 to help accelerate the transition to electric vehicles Was.
While the demand for electric two-wheelers is increasing, the supply of parts from China has been affected, affecting sales.
Anjali Ratan, Founder, Ratan India Enterprises said, “We are dependent on imports, and localization is currently at 50% with supply constraints.” “Large-scale electric two-wheeler adoption still suffers from cost and infrastructure issues,” she said.
Hero Electric’s Munjal said the company is “reimagining roadside mechanics, installing portable batteries in two-wheelers, helping consumers.”
He said companies in the EV space need scale, strong supply chain and dealer network.
Experts said government subsidies will increase adoption, encourage research and development and innovation to bring it closer to the target of 30% share of the two-wheeler market in five years, from just 1% at present.
In 2020-21, electric two-wheeler sales stood at 140,000 units, while conventional two-wheeler sales stood at 17 million.
of India electric vehicle According to Delhi-based think tank CEEW Center for Energy Finance, the market could reach $206 billion with sales of over 100 million units in a decade.