India’s best-selling electric scooter, the Ola S1, now costs 30 per cent more than it did a few weeks ago. With the government recently slashing subsidies for electric two-wheelers under the FAME-II scheme, premium electric two-wheelers (E2W) are now eligible for a significantly lower incentive. As a result, in the last few days, Ola Electric sequentially increased the price of the Ola S1, which was available at a price of Rs 1 lakh up until a few weeks ago, to Rs 1.30 lakh today. The range-topping Ola S1 Pro, too, has seen its price rise from Rs 1.25 lakh to Rs 1.40 lakh (all prices, ex-showroom, including revised FAME-II subsidy), meaning the gap between the two models has narrowed to a mere Rs 10,000.
Also Read: FAME-II Subsidy For Electric Two-Wheelers Slashed; EV Players React
The reduction in FAME-II subsidy for Ola's e-scooters ranges from Rs 24,000 to Rs 37,000.
Owing to its 4 kWh battery pack, the S1 Pro previously qualified for a total subsidy of Rs 59,550 under the FAME-II scheme. However, with the heavy industries ministry capping incentives at 15 per cent of an E2W’s ex-factory price and revising the subsidy to Rs 10,000 per kWh of battery capacity from June 1 onwards, the maximum incentive the S1 Pro will now qualify for is Rs 22,268. Similarly, the total subsidy for the S1 has come down from Rs 44,700 to Rs 20,678. As a result, the new on-road prices of the S1 and S1 Pro in Mumbai are Rs 1.45 lakh and Rs 1.55 lakh, respectively.
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This follows a similar price increase for the Matter Aera electric motorcycle. The Aera was launched at Rs 1.44 lakh for the 5000 variant, and Rs 1.54 lakh for the 5000+ variant, earlier in 2023. However, the start-up has announced that from June 6 onwards, the Aera 5000 will cost Rs 1.74 lakh, while the Aera 5000+ will cost Rs 1.84 lakh (ex-showroom). As a result, the Aera – originally envisioned as a sporty alternative to a petrol commuter motorcycle – will cost, or even exceed, Rs 2 lakh, on-road.
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Other leading manufacturers including Ather Energy, Bajaj Auto, TVS, Hero MotoCorp (Vida) and Tork Motors are also expected to announce price hikes for their battery-powered models shortly.
Also Read: Matter Aera Electric Motorcycle Prices Hiked By Rs 30,000 As FAME-II Subsidy Drops
Ola Electric will roll out the more affordable S1 Air e-scooter in July.
The Ola S1 has been pivotal to Ola Electric’s fortunes. The introduction of the more affordable S1 variant marked a sustained rise in volumes for the electric vehicle start-up, propelling it right to the top of E2W sales charts and helping it maintain market leadership for months on end. Marketing campaigns urging customers to buy the S1 and S1 Pro before the impending price rise appear to have paid off for Ola Electric, with over 26,000 units being sold in the month of May – the highest monthly figure for Ola to date – as per the latest registration data on the VAHAN portal.
Also Read: Bhavish Aggarwal Confirms Ola S1 Air Deliveries Still On Track For July 2023
Ola Electric had previously announced plans to introduce a smaller, 2 kWh battery for the S1, but is no longer accepting bookings for that particular variant. Ola is also gearing up to roll out a more affordable electric scooter in the form of the upcoming S1 Air. The S1 Air – a more basic version of the S1 with different specifications – has previously been confirmed to launch with 2 kWh, 3 kWh and 4 kWh battery options, at price points ranging from Rs 85,000 to Rs 1.10 lakh (ex-showroom).
