TVS iQube FAME-II linked price increase will be done in a staggered manner to ensure the electrification momentum is least impacted
With FAME II subsidies reduced for electric two-wheelers, several OEMs have announced price hikes. Subsidy under FAME II has been reduced from Rs 15,000 per kwh to Rs 10,000 per kwh. Also, max subsidy amount is now limited to 15% of the ex-factory pricing. This was 40 percent earlier.
With significant reduction in FAME II subsidy, most OEMs have chosen to pass on the burden to consumers. Some OEMs like TVS have adopted a staggered approach, wherein prices will be increased gradually. This will reduce the overall cost burden on consumers and limit the impact on sales. TVS has also announced a loyalty programme to ease the impact of price hike.
TVS iQube new prices – June 2023
TVS iQube prices have been increased in the range of Rs 17,000 to Rs 22,000. The exact amount of price hike will depend on the variant. The new prices are effective from June 01, 2023. Before the revision in FAME-II, TVS iQube was eligible for subsidy of Rs 51,000. The base variant was priced at Rs 1.74 lakh, whereas iQube S variant came with a price tag of Rs 1.85 lakh.
With the earlier subsidy, iQube standard variant was available at effective price of Rs 1.06 lakh in Delhi. With the new subsidy rates, iQube will cost around Rs 1.23 lakh. It remains to be seen what kind of an impact increased prices will have on sales of iQube electric scooter.
Electric two-wheeler segment is expecting short-term erosion in sales. However, there’s unlikely to be any major impact in medium to long-term. There will be more clarity in the market in coming months, which can help boost sales. OEMs could also launch affordable, no-frills versions to attract customers.
In addition to applying a gradual price increase strategy, TVS has also announced a special loyalty benefit programme for iQube customers. It will be applicable for folks who may have booked their iQube on or before May 20, 2023. The loyalty programme will be available only for a limited time period. It is meant to ease the cost burden, resulting from the revision in FAME II subsidy. Details of the loyalty programme will soon be published on the company’s website.
iQube continues to register strong sales
In the last financial year, TVS iQube achieved the sales milestone of 1 lakh units. In May, retail sales were more than 20,000 units. Sales in coming months are expected to be just as good, as iQube has a healthy booking pipeline of more than 30,000 units. Even with the price hike, it appears that iQube will be able to increase its sales in the ongoing financial year.
TVS continues to be committed towards promoting the use of sustainable mobility solutions. The company will take all steps, as necessary to accelerate faster adoption of EVs. TVS will also focus on development of overall electric vehicle ecosystem in the country.