Cos take price-cut route to get more electric two-wheelers on road
Ola Electric last week cut the price of its entry-level scooter by ₹25,000. That brought down the price of the Ola S1X+, with a 3kwh electric motor, in line with that of the top-selling petrol-powered scooter, Honda's Activa.
Steep price cuts and the launch of affordable models by companies like Ola Electric, Ather Energy and Bajaj Auto-owned Chetak Technology have helped narrow, or even bridge, the gap between the prices of battery-powered and petrol-run two-wheelers. Industry experts expect the increasing affordability to quicken the adoption of electric two-wheelers in India.
While sales have been surging and are expected to be around 850,000 units in fiscal 2024, electric two-wheelers still account for just 4.5% of the market. The main challenges to adoption of this cleaner mode of mobility have been higher acquisition cost compared with petrol-powered models and inadequate charging infrastructure.
Evolving pricing strategies and increasing focus on affordability and accessibility, along with government initiatives towards developing charging infrastructure, are expected to further boost the sales of electric-two wheelers, said Ravi Bhatia, president of automobile consultancy firm Jato Dynamics.
Cheaper batteries have also helped companies lower their vehicle prices. Tata Motors, the biggest electric passenger vehicle maker in the country, last week cut the prices of its two EV models citing a reduction in the cost of batteries.
The Ola 3kwh S1X+ is now retailed at ₹85,000, while the Honda Activa costs
