No Price Increase for Hero Electric Scooters Despite FAME II Subsidy Decrease

Hero Electric, a prominent player in the electric two-wheeler industry in India, has restated its commitment to encouraging the widespread adoption of electric two-wheelers (E2W) and rectifying misconceptions regarding their ownership costs. 

Despite the recent decrease in the FAME II subsidy, the company has firmly declared that it will not raise the prices of its popular e-scooter models. This decision comes in light of the government's decision to lower the subsidy, which has consequently led to a substantial hike in prices.

The company strongly believes that affordability is a key factor in driving the widespread adoption of electric vehicles. To facilitate this, it recognizes the importance of maintaining price stability. As part of its commitment to this goal, the company has decided not to increase the prices of its e-scooter lineup. This strategic move aims to encourage a larger number of consumers to make the switch to electric vehicles without incurring additional financial burdens.

Sohinder Gill, the CEO of Hero Electric, expressed concerns about the sudden and significant reduction in subsidies, as it may negatively impact customer sentiment and hinder the adoption of electric two-wheelers (E2W). While the industry may still witness higher sales compared to the previous year, there is a possibility of a slowdown in the exponential growth trajectory. Consequently, there is a risk of falling short of the target of 2.3 million units projected by Niti Aayog.

Despite the significant financial challenges imposed on us due to subsidies being stuck with MHI for over 15 months, we remain committed to providing affordable mobility solutions to our valued customers. We will maintain our current prices for as long as we can.

Throughout our 15 years in business, we have consistently encountered resistance from those who are opposed to the widespread adoption of "affordable electric mobility." However, we firmly believe that a mobility solution that offers undeniable benefits to individuals, the nation, and humanity as a whole cannot be suppressed indefinitely.

These statements reflect our determination to overcome obstacles and continue offering cost-effective electric mobility options to customers, despite the difficulties we face.