Ola Electric recently reduced the price of its basic scooter to match the Honda Activa. This fact reflects a trend in the electric two-wheeler industry, with Ather Energy and Bajaj Auto’s Chetak Technology offering cheaper models and price cuts.
Ola Electric’s Cost Cutting Strategy
Ola Electric’s S1X+ electric scooter is now priced at ₹85,000, directly competing with the Honda Activa, which ranges between Rs. 76,000 and Rs. 90,000. The company believes this pricing strategy will encourage customers to choose electric scooters over petrol-powered ones. Bajaj Auto recently introduced an updated Chetak EV scooter with two versions priced at ₹1.15 lakh and ₹1.35 lakh.Special Discount Announcement
Ola Electric’s chairman announced a special discount on electric scooters. The discount will be available from February 16 until the end of the month. The aim is to reduce the price gap between electric and petrol scooters and promote the adoption of EVs in India. Ola Electric offered a 50% discount on extended warranty and up to Rs 2,000 exchange bonus on the S1 Air and S1 Pro models in January.Challenges and Strategies for EV Adoption
Estimations suggest EV two-wheeler sales may reach 8,50,000 units in fiscal 2024 but make up just 4.5% of the market. The main challenges for widespread EV adoption are the higher upfront cost compared to petrol scooters and the lack of charging infrastructure.Strategy Impact and Other Initiatives
Meanwhile, companies are addressing these challenges by implementing pricing strategies, focusing on affordability, and supporting government initiatives for charging infrastructure development. Cheaper EV batteries have also contributed to price reductions, as seen with Tata Motors cutting prices for its electric vehicles.Tata Motors became the first Indian EV manufacturer to announce price cuts for its EV models on February 13, following Tesla’s move to reduce prices for some Model Y cars in the US. Tata Motors attributed the price cut to reduced battery costs, passing on the benefit to consumers. The introductory prices for the recently launched Punch EV remain unchanged as they already consider a reduction in battery costs in the future.LEADERBOARD
