2024 Surprise! While FAME 2 is going EV Price are Dropping

EVs no longer need FAME 2 to be Affordable, Here’re n EVs on Discount

Summary:

After slashing away the FAME 2 subsidy, the EV prices were expected to go up, and sales were expected to drop, In a contradictory situation, the exact opposite is happening in the market, with EV sales being at an all-time high and EV prices being at an all-time low. Amid lowering subsidies, EV companies are offering discounts on their electric vehicles; here, let’s see the top 5 EVs that are at a discounted price.

The FAME 2 subsidy was introduced in 2019 to make the E-vehicles affordable and attract more people to switch to electric. Giving subsidies turned out to be the best decision of the government for promoting electrification. The EV sales increased exponentially, and within a few years, we touched the 6% EV penetration mark in India. Within a few years, we saw many new companies and startups enter the Indian market for manufacturing EVs, building infra, making components and much more.

The impact of the FAME 2 subsidy was so strong that its waves could be experienced even after its termination. The FAME 2 was removed in March 2023, and after that, it was expected that it would end electric vehicles and that no one is going to buy electric vehicles at such high prices. But no such thing happened, and although the market did experience a small dip, people continued buying electric vehicles after that.

With a YoY growth of 174%, India witnessed the highest-ever EV sales despite slashing the FAME 2 subsidy. A significant reason behind this is the dipping EV prices and plummeting demand for electric vehicles in India.

Top 5 Electric vehicles that are Discounted:

From major to minor EV manufacturers, many companies offer electric vehicles at a discounted price. Let’s see each of them one by one.

1. Tata Motors:

Starting the price reduction trend, Tata Motors was the first to reduce its prices of electric vehicles, and the company reduced the price range between 70,000 and 1.2 lakh.

Tata Nexon EV Price Reduction:

Variant	Old Price (in lakh)	New Price (in lakh)	Difference (in lakh)
Creative + MR	14.74	14.49	0.25
Fearless MR	16.19	15.99	0.20
Fearless + MR	16.69	16.49	0.20
Fearless + S MR	17.19	16.99	0.20
Empowered MR	17.84	17.49	0.35
Fearless LR	18.19	16.99	1.20
Fearless + LR	18.69	17.49	1.20
Fearless + S LR	19.19	17.99	1.20
Empowered + LR	19.99	19.29	0.70

Tata Tiago EV Price Reduction:

Variant	Old Price (in lakh)	New Price (in lakh)	Difference (in lakh)
XE MR	8.69	7.99	0.70
XT MR	9.34	8.99	0.35
XT LR	10.29	9.99	0.30
XZ + LR	11.09	10.89	0.20
XZ + Tech Lux LR	11.59	11.39	0.20

2. Ather Energy

Being a new-age EV startup, Ather was the first among the EV 2 Wheelers to reduce its prices, and the company reduced the cost of its Ather 450S model.

Variant	Old Price	New Price	Difference
Ather 450S	1,35,000	1,09,999	25,002

3. Ola Electric:

Ola, the biggest fish in the sea of the EV market, gave the most significant price drop on almost every model of its electric scooter. Here’s a tabular form of its price reduction.

Ola’s updated prices

E-Scooter	Old Price	New Price	Price Cut
Ola S1 Pro	1,47,499	1,29,999	17,500
Ola S1 Air	1,19,999	1,04,999	15,000
Ola S1X+	1,09,999	84,999	25,000

4. Bajaj Chetak:
The OG of the automobile market, Bajaj, has also reduced the prices of its electric scooters, and here are the updated EV prices.

Variant	Old Price	New Price	Difference
Bajaj Chetak Premium	1,52,000	1,35,000	17,000

5. Okaya Electric: Okaya is a well-known company known for its existence in the electrical market, and for the past few years, the company has been making a wide range of electric scooters. Here are the price drops given by Okaya Electric.

Variant	Old Price	New Price	Difference
Okaya EV	92,899	174,899	18,000

Conclusion:

The slashing of EV prices has shown that electric vehicles no longer need FAME 2 subsidies to be affordable in the public domain. At this rapid pace, our goal to reach 40% electric by 2030 looks very promising. EV startups like Zecat and 1C EV charging, which are bridging the gap between affordability and usability, greatly push the EV revolution in India.