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Ather Energy To Refund Charger Cost For E-Scooters Purchased Till April 12, 2023

Including the total cost of reimbursing customers who paid an additional amount for the charger of their e-scooter, Ather is set to shell out around Rs 140 crore.
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By Amaan Ahmed

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Published on May 4, 2023

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Highlights

  • Ather Energy will reimburse over 90,000 customers who bought a vehicle charger at extra cost.
  • Subsidy payouts to the EV start-up were put on hold for the duration of the investigation.
  • A portable charger is now included in the cost of the Ather 450X e-scooter.

After Hero MotoCorp, TVS and Ola Electric, electric vehicle (EV) start-up Ather Energy has become the latest manufacturer to announce a refund for customers who have paid an additional amount for the charger of their purchased vehicle. Ather Energy has confirmed it will be extending reimbursements to eligible customers – who purchased an Ather electric scooter and had to shell out extra money for a charger – in the next two weeks. However, this process may take some time, as different customers paid different amounts for their vehicle's charger, carandbike understands.

 

Also Read: TVS To Refund iQube Customers Who Paid Over Rs 1.50 Lakh For The E-Scooter

 

Ather Energy charged customers up to an additional Rs 20,000 for the charger sold along with the scooter.

 

“While there is no legal compliance requirement to bundle chargers, after discussions with MHI and in the larger interest of the EV ecosystem, we recently made the change to bundle the charger with the vehicle. In order to be fair to customers who had bought the vehicle prior to this change, we have decided to refund the invoiced amount of the chargers for vehicles bought before April 12, 2023. Over the next couple of weeks, we'll be sending out an email to the customers who are eligible to claim this refund”, read a media statement from Ather Energy.

 

Also Read: Ola Electric Confirms It Will Reimburse Charger Costs To Customers After FAME-II Controversy

 

Ather Energy is one of four brands under scrutiny from the ministry of heavy industries (MHI) for allegedly exploiting a loophole to meet the price limit and subsidies as specified by the FAME-II scheme. In total, Ather Energy is now faced with paying up Rs 140 crore as part of the reimbursement process. The start-up has also been asked to return close to Rs 25 crore to the MHI, as it further added to the price of its flagship scooter by including a proprietary software upgrade. Up until recently, the Ather 450X’s price included a ‘performance upgrade’ over and above the ex-showroom cost of the scooter, which added Rs 21,510 to the final invoice, from which the FAME-II subsidy amount (Rs 55,500) was deducted.

 

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Also Read: Hero MotoCorp To Reimburse Vida V1 Buyers For Chargers; Slashes E-Scooter Prices

 

Ather Energy was named in whistleblower emails to the heavy industries ministry alongside Hero MotoCorp, Ola Electric and TVS Motor Company, with the whistleblower pointing out how all four brands, up until recently, excluded the portable charger to be sold along with the scooter from the vehicle’s ex-showroom cost. Brands resorted to this in order to meet the Rs 1.50 lakh ex-factory price limit, failing which they wouldn’t be eligible for subsidies under the FAME-II scheme. All four manufacturers were served a notice by the heavy industries ministry on the matter a few days ago, following which the brands moved to reimburse customers.

 

Also Read: Electric Two-Wheeler Sales In April 2023: Overall Sales Dip Sharply, But Ola Sales Soar

 

Prices of the Ather 450X now start at Rs 1.15 lakh, and include the cost of the charger.

 

With this controversy looming large, Ather recently rejigged its model line-up and slashed prices. The 450X e-scooter is now priced from Rs 1.15 lakh (ex-showroom, Bengaluru, including FAME-II subsidy). There is no base 450 Plus variant any more – instead, there’s just the 450X. It can be had either in standard form, or with the ‘Pro Pack’ option included, which adds Rs 30,364 to the price, bumping the scooter’s price up to Rs 1.45 lakh for the fully-loaded model. These prices are lower by about Rs 10,000 to Rs 15,000, compared to previous prices for Ather's scooters.

 

Also Read: Ather 450X Price Slashed; Features Dropped From Base Variant Following Subsidy Pause

 

Slow charging the entry-level 450X will now take over 15 hours, as it comes with a lower-capacity charger.

 

A bundled charger is included in the ex-showroom cost of the Ather 450X, but to keep prices in check, Ather has discontinued the 450 Plus, and is instead offering a decontented, entry-level version of the 450X with a significantly lower-capacity charger. A lower-capacity charger sees the charge times for the base 450X shoot up to 12 hours and 15 minutes (0 to 80 per cent) and 15 hours and 20 minutes for a full charge. In comparison, the 450X Pro Pack can achieve 0 to 80 per cent charge in four hours and 30 minutes, and a full charge in five hours and 40 minutes. More importantly, though, the base 450X cannot be charged at Ather’s fast-charging station network, the Ather Grid.

 

Other manufacturers under the scanner have already announced their plans to compensate their existing customers. Ola Electric confirmed it, too, will return the cost of the charger to buyers of the S1 e-scooter, and Hero MotoCorp and TVS will also refund buyers of the Vida V1 and iQube e-scooters, respectively.

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Last Updated on May 4, 2023


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