Impact of EV Policy on Hero Electric in Maharashtra and Gujarat

The newly revised Maharashtra EV Policy 2021 was announced on the 13th of July 2021 and is applicable till the 31st of March 2025. In which the policy provides benefits to the EV manufacturer and consumer. The policy amount announced was Rs 930 crore.

The Gujarat government, on 23rd of June 2021 has unveiled a four-year plan with a total outlay of Rs 870 crore to be offered as subsidy/incentive for new buyers of electric vehicles across segments and those investing in the development of infrastructure for EVs. These policies have impacted massively on some companies, and one among them is the Hero Electric scooter. Hero Electrics mid-speed scooter has seen a massive price drop with a vast margin through these policies. The scooter benefited from an increased subsidy provided by the FAME-II policy from the central government and the Gujarat EV poly 2021 as-well-as the Maharashtra EV Policy 2021 from the states.

Maharashtra EV Policy 2021 effects on Hero Electric scooter

The incentives provided in Maharashtra EV Policy 2021 for Electric two-wheelers is that the early 100,000 electric buyers will get an incentive and extended subsidy of Rs 5,000 per kWh of battery capacity. Maharashtra EV Policy 2021 is also offering an "early birds' incentive" of 15,000.

• The Hero Optima Hx (single battery) prior cost Rs 53,000 costs around Rs 39,000 after incentives and subsidies.
• The Hero Optima ER (dual battery) prior cost Rs 58,000 subtracting subsidy of 25,000 final prices is around Rs 33,000.
• Hero Electric Photon prior cost Rs 71,000 subtracting subsidy of Rs 16,000 final cost is around Rs 55,000.
• The Nyx E5 costs Rs 46,000 after the subsidy and incentive benefits.
• The Nyx E5 ER (double battery) is much cheaper for Rs 38,000 after subsidy and an incentive benefit of Rs 25,000.

Gujrat EV poly 2021 effects on Hero Electric scooter

The incentives provided in Gujrat EV poly 2021 have a subsidy of Rs 10,000 per kWh of battery capacity on the first 1,10,000 electric two-wheelers sold.

• The Hero Optima HX (single-battery) prior cost Rs 53,600 subtracted subsidy of Rs 15,000 the final price is around 38,000.
• The dual battery version of Optima (ER) prior cost Rs 58,980 subtracted subsidy of Rs 20,000 the final price is around Rs 39,000.
• The hero Electric Photon prior cost Rs 71,449 subtracted subsidy of Rs 19,000 the final price is around Rs 53,000.
• The single battery Nyx E5 prior price Rs 60,000 subtracted subsidy of Rs 15,000 the final price is around Rs 45,000.
• The dual battery Nyx E5 ER earlier cost around Rs 63,000 subtracted subsidy of Rs 20,000 the final price is around Rs 43,000.

Hero Electric assumptions

Hero Electric assumes the upcoming buyers to switch to mid-speed e-scooter with the implementation of state subsidy.

The CEO of Hero Electric Sohinder Gill said “With the introduction of the state policies, the greatest thing is that mid-speed scooters have become cheaper than the low-speed scooters. Many people were buying low-speed models for their affordability, they're going to switch over straightaway to mid-speed models. For them, the sticker price was the deciding factor. The low-speed e-scooter market will never go away, but instead of accounting for 70 percent of all e-two-wheeler sales, it'll now drop down to 20 percent. Till now, buyers could choose between a Honda Activa or a low-speed e-scooter for the same price, and that's why they weren't going for electric because there was too much of a difference in performance. With the subsidies, mid-speed e-scooters are now a more favorable choice”.

Bottomline 

The Government policies will be boosting the entire Electric vehicle industry by benefiting the consumer as well as the manufacturer. And Hero Electric is one of such manufacturing units with a scope of improved and satisfied consumers.

Who are we?

At Kazam, we take care of our EV buyers and give them full EV solutions. From battery and charging solutions to the range and cost of electric vehicles. Make an appointment right now! Visit Kazam EV at kazam for more information, or send us a message on our social media handles Kazam EV, and we will respond to your kazamly!