Ampere Electric Raises Prices of Primus and Magnus EX by up to Rs. 39,100 Following FAME II Update

Ampere Electric, the electric two-wheeler brand under Greaves Electric Mobility, has announced a price increase of up to Rs. 39,100 across its range of electric scooters. This decision comes in response to the revised FAME II subsidy, effective from June 1, 2023, which has led electric two-wheeler manufacturers to adjust the prices of their offerings. 

Ampere has joined the list of manufacturers implementing these price revisions, affecting models such as the Primus, Magnus EX, and Zeal EX. Following the FAME II subsidy revision

• The Ampere Zeal EX has seen a price hike of Rs. 20,900, resulting in a new retail price of Rs. 95,900. 

• The Magnus EX, on the other hand, has become more expensive by Rs. 21,000, with a current price of Rs. 1.05 lakh. 

• The top-spec Ampere Primus has undergone the highest price increase of Rs. 39,100, now retailing at Rs. 1.49 lakh. 

It's important to note that all prices mentioned are ex-showroom prices.

The Ampere range of electric two-wheelers has lost its significant cost advantage and now approaches the pricing of competitors such as the Ather Ola Sl Pro and Bajaj Chetak. Previously, Ampere held a lower price position in the market. 

In May of this year, Ampere ranked as the fifth-largest player in the electric two-wheeler segment, following Ola, TVS, Ather, and Bajaj Auto. The company recorded sales of 9,632 units last month, representing a 12% month-on-month growth. 

However, the impact of the price hike on the electric two-wheeler market remains to be seen. As other models also experience price increases, it will be interesting to observe whether models like the Magnus EX and Primus benefit from the overall price adjustment.

In addition to facing a subsidy reduction, Greaves Electric is currently confronted with allegations of non-compliance with the Phased Manufacturing Program (PMP) guidelines within the framework of the FAME II scheme. The Ministry of Heavy Industries has sent a letter to Greaves Electric, requesting the company to return Rs. 124 crores along with interest, which was claimed by the company as a subsidy.

Moreover, the ministry is contemplating disqualifying Greaves Electric from the subsidy scheme due to these violations. Greaves Electric, in response, has released a statement stating that it is actively collaborating with the government to comprehend the nature of the violations and is committed to taking the necessary actions to rectify them.

In addition to Ampere, several other electric vehicles (EV) manufacturers, including TVS, Ola Electric, and Ather Energy, have also announced price increases to the recent revisions in the FAME II subsidy regulations. However, Hero Electric stands out as the only exception, as they have chosen not to pass on the subsidy reduction to their customers.