Government reduces subsidy on electric two-wheelers : Ather 450X electric scooter will be costlier by ₹ 32,500 from June 1, now the starting price is ₹ 98 thousand

government reduces subsidy on electric two-wheelers.

Government reduces subsidy on electric two-wheelers: Ather 450X electric scooter will be costlier by ₹ 32,500 from June 1, now the starting price is ₹ 98 thousand

Ether Energy, an electric vehicle (EV) company based in Bengaluru, has recently announced an increase in the price of its electric scooter, the Ether 450X, starting from next month. The company has informed customers that they can purchase the Ether 450X with a discount of INR 32,500 until May 31st, before the price hike takes effect on June 1st. The initial price of the scooter is currently set at INR 98,000.

Government’s Decision to Reduce Electric Two-Wheeler Subsidies:

The central government has decided to reduce the subsidy provided on electric two-wheelers (e2Ws). The subsidy under the Faster Adoption and Manufacturing of Electric Vehicles Phase II (FAME-II) scheme has been reduced from INR 15,000 to INR 10,000 per kilowatt. Additionally, the maximum subsidy cap on ex-factory prices has been lowered from 40% to 15%. Following these changes, Ether Energy has announced the price hike for its electric scooter.

Reasons for the Government’s Subsidy Reduction:

The government has taken the decision to reduce subsidies as the allocated funds for e2W subsidies are nearing depletion. Approximately 80% of the total budget has already been allocated to benefit 1 million people. Under the current scheme, EV manufacturers receive subsidies ranging from INR 17,000 to INR 66,000 per two-wheeler. With the new announcement, the subsidy will be reduced to INR 15,000 to INR 20,000. Initially, during the launch, the FAME-II subsidy was set at INR 10,000 per kilowatt, which was later increased to INR 15,000.

Allocation of Subsidy Funds and Current Progress:

The government has spent 80% of the allocated budget of INR 10,000 crore for the FAME-II scheme. A total of INR 5,172 crore was allocated in the budget presented in February 2023. As of now, INR 3,889.94 crore has been spent. Until March 4th, 2023, a total of 975,000 electric two-wheelers have been sold in the country, with 65% of them being sold in the financial year 2022-23. Electric two-wheelers have contributed more than 60% of the total EV sales in the financial year 2023.

Overview of the FAME-II Scheme:

The FAME-II scheme was initiated by the central government to promote the adoption of electric vehicles. Under this scheme, subsidies are provided on electric vehicles to encourage their purchase. A budget of INR 800 crore was allocated for the FAME-I scheme, and INR 10,000 crore has been allocated for the FAME-II scheme.

Ether 450X: Key Features:

The Ether 450X electric scooter offers a 25% improved battery capacity compared to its predecessor, with a 3.7 kilowatt-hour lithium-ion battery pack that provides 20% more life. The battery warranty has been extended from three years to five years or 60,000 kilometers. The company claims that the battery will retain 70% of its range after five years. The scooter offers four ride modes: Eco, Ride, Sport, and Warp. The certified range of the scooter on a full charge is 146 kilometers, while the true range is 105 kilometers.

Top Speed and Powertrain:

The base variant of the new Ether 450X has a certified top speed of 90 km/h. The scooter is equipped with a high-performance powertrain that delivers instant torque and efficient acceleration. It features a lightweight frame and advanced suspension for enhanced stability and maneuverability.


As the government reduces the subsidy on electric two-wheelers, Ether Energy has decided to increase the price of its Ether 450X electric scooter. The reduction in subsidies is due to the depletion of funds allocated for e2W subsidies. Despite the price hike, the Ether 450X offers improved battery capacity, extended warranty, and multiple ride modes, making it an attractive option for electric scooter enthusiasts.