FAME subsidies: Is it the perfect time to buy an electric scooter?

With the elections coming up and this year's budget being a vote on account (Interim), there is a fear that the subsidies may be dropped till the time the full budget is announced in July.

BHPian yedukrishnan199 recently shared this with other enthusiasts

My friend who lives in Thrissur, Kerala is currently in a dilemma whether or not to buy an electric scooter. Because the FAME-II subsidies are concluding in March 2024, he is confused about whether to go for an electric scooter now or wait for new launches and better offers or options.

He has an ICE scooter at home for his usual errands but will need a scooter at least by next year. With the elections coming up and this year's budget being a vote on account (Interim), there is a fear that the subsidies may be dropped till the time the full budget is announced in July. However, there may also be a chance that subsidies are retained till the full budget too. However, even in the full budget, the chances are high for subsidies to be reduced and FAME-III (If introduced) may not be as supportive as FAME-II.

So with OLA, Ather, Hero Vida, TVS IQube, and Bajaj Chetak all having discounts during this month, ranging from 12.5k to over 30k, he is wondering whether he should take the plunge and get an electric scooter now. He is also interested in a few other scooters like the River Indie where he loved the practicality.

Moreover with new models and new technology (Lithium iron phosphate battery, better range, features) coming to scooters entering the market in 2024, he is worried whether purchasing one now, whereby it would surely remain idle till June 2024, is a wise decision.

Hero, Ather, and Honda all set to launch new scooters in 2024-25 and with more and more companies entering this space and with competition getting tougher, he is in a dilemma whether to go for one now or wait till the time he needs one.

When the need does arise it will be for around 30 to 40 km a day, and he doesn't have any issues with power as he has solar in his home, so it is free charging, this is the main reason he is considering one and with electric scooters being just a few thousand more expensive or sometimes at par on cost with ICE scooters (for example OLA S1X+), he prefers an electric scooter when the need arises, but if the subsidies are removed and the scooters get costlier, it wouldn't be as profitable as it is now. So should he go for one with almost every manufacturer providing one or the other offer or should he wait until he "really" needs one?

I am on the fence on this one and thought the best place to ask would be here, to the BHPians!, so feel free to reply and all suggestions are truly welcome! If you have any personal/specific suggestions feel free to DM me too!

Here's what BHPian silverado had to say on the matter:

If he has solar, he should buy an electric scooter right away, and not wait for an ideal time. Policies discounts etc will keep changing, but if his ICE scooter is due for replacement he can buy an electric today.

Here's what BHPian shancz had to say on the matter:

What I would suggest is to use this time to take a lot of test rides of all EVs he likes and some more and get a feel of things. Since he's not in a hurry he can visit the ownership reports and then take an informed decision.

I am not competent on the battery technology but common sense dictates that the scooters on Li-Ion batteries have been doing ok and any technology will take some time to be tested out in our conditions to be determined stable enough.

Also new manufacturers like River will need some time to set-up their service network around you and also sort out the issues/niggles as they come in real world. Hence the suggestion of waiting out the first iteration/6-8 months of a new vehicle to let the manufacturer sort out the issues.

In case post his test rides he likes something a lot, and if feasible otherwise, get that and have fun

Here's what BHPian bijims had to say on the matter:

I am in a similar boat having sold my old ICE scooter but still having another for my needs, I have test-ridden almost all the major players' scooters including the Ola S1 Pro Gen2, Ola S1X+, Ather 450X, TVS iQube, and iQube S, Bajaj Chetak Urbane (Premium wasn't available for a test ride) and Hero Vida. From my experience, what I can tell you is these major players have a significant presence in major cities and towns as compared to others.

The other major players in this segment (in terms of sales) are Greaves Electric (Ampere), Okinawa Autotech, Hero Electric, Okaya EV, BGauss Auto, BattRe Electric, Kinetic Green, Revolt (electric bikes), and Joy E-bikes but none of their offerings can compete in terms of sales, features, price or presence over the likes of the top 4 (Ola, TVS iQube, Bajaj Chetak and Ather). They have vastly superior products with good range, battery capacity, quality, and even network. So getting one from amongst them would be the better decision in most towns and villages.

Of the up-and-coming 2W EV startups, I find River to be quite good, they have nailed the basics and have a competent product.

Now coming to the fact of new launches in this segment, Hero Vida is planning a couple of launches in the FY 2024-25, Ather has already announced its family scooter coming in 6 months and they do have another launch as well. TVS will finally launch the iQube ST this year and there is a high probability that Honda will also mark its foray into the segment this year as well. So,well there are a lot of products to watch out for.

Here's what BHPian Rajeevraj had to say on the matter:

In my view, this is the key point. If the need for the scooter is only by next year, I don't see a point buying now. Understand the point about subsidies and pricing etc, but that should not be a decision factor to buy something that you won't use for 6 months atleast. That amount can be invested for a year to take care partly for the increased amounts. On the plus side you will get more options and newer iterations of current models.

Here's what BHPian B5Glider had to say on the matter:

3 important points when you buy an EV which I would suggest when you buy a EV 2W.

1) Do not expect that prices will increase. They will decrease considering sales going up and volume benefits accruing. Evidence of discounts even on a new Ather 450s is evidence to this.

2) I struck off Ola just because in my view they don’t understand the 2W market as yet. They are selling in huge numbers due to advertising and discounts. I would suggest to stick on to a big brand. Remember Ather has 40% now from Hero. And I am expecting Hero to barge in with another 9 anytime if Ather promoters lift off the 40% cap.

3) Do a clear balance out on what exactly you want. For eg. Ola’s music function is not something I like. Weigh out to buy an advanced tech motor instead of the basic hub motor. iQube is hub motor and hence was out of my list. All latest 3kw Olas are hub motors and hence did not care to look at them. Try scoots with PMSM tech.

I picked up a Vida though it sells less looking at Hero's brand behind. They know what and how to sell. They are just testing waters now like how Chetak did before a year and now Chetak is with all bells and whistles.

In my view the best built is Chetak. I liked the build but did not like their motor tech. Ather was 2nd in my list due to their pricing which they corrected now. I still have concerns on their belt which had seen issues. Had the Ather 450s being introduced with the 20k less discount that they are giving now, eyes closed i would have bought it!

Last to say, discounts are raining now. The best scoots are available from 120k approx including battery extended warranty. Grab them. All the very best.

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