A cheaper iQube can become a more attractive option in comparison to rival Bajaj Chetak
As per amendments introduced in FAME II (Faster Adoption and Manufacturing of Electric Vehicles in India), the subsidy available has been increased to Rs 15,000 per kWh. Earlier, the subsidy available was Rs 10,000 per kWh.
The new subsidy rates will be applicable for all EVs and hybrids excluding only buses. Additionally, the government has increased the incentive level to 40% of the cost of vehicle. Earlier, this was fixed at 20%.
TVS iQube revised prices
With the changes in FAME-II subsidy scheme, iQube’s on-road price is now Rs 11,250 less than earlier. iQube is currently offered in Delhi and Bengaluru. In Delhi, the effective on-road price is down to 1.01 lakh.
In comparison, customers in Bengaluru will have to pay Rs 1.10 lakh. Cost is lower in Delhi, as the state government provides additional subsidies to EVs. Promoting use of EVs is an integral part of the overall plan to reduce pollution in the national capital region.
With significant reduction in price, iQube can be in an advantageous position as compared to rival Bajaj Chetak. At the time of its launch, Chetak was offered at an attractive introductory price of Rs 1 lakh. However, with subsequent price revisions, Chetak has become quite expensive. Chetak Urbane and Premium variants are available at Rs 1.43 lakh and Rs 1.45 lakh, respectively.
Chetak currently cannot benefit from increased subsidy, as it is yet to get approval under FAME-II scheme. It will have to continue with its existing prices. Due to this, Chetak prices are now at par with that of Ather 450X.
Ather was the first electric two-wheeler manufacturer to announce reduction in prices on account of increased subsidy. In Bengaluru, Ather 450 Plus and 450X are now priced at Rs 1,25,490 and Rs 1,44,500, respectively.
TVS iQube expansion plans
The hike in subsidy couldn’t have come at a better time for iQube. That’s because TVS is currently working to introduce iQube in 20 new cities. With prices reduced, it could become easier for the company to attract customers. The new cities that will be covered include Mumbai, Pune, Chennai, Ahmedabad, and Hyderabad.
However, things won’t be easy for iQube, as Bajaj is also working to launch Chetak in new cities. Bajaj has plans to cover around 30 new cities by end of this fiscal. Ather is already ahead in the game, as it has launched its scooter in more than a dozen cities. More locations will be covered in the coming months.