A cheaper iQube may become a more attractive option compared to rival Bajaj Chetak
In line with the changes introduced in FAME II (Faster Adoption and Manufacture of Electric Vehicles in India), the available subsidy has been increased to Rs 15,000 per kWh. Previously, the available subsidy was Rs 10,000 per kWh.
The new subsidy rates will apply to all electric and hybrid vehicles, except buses only. In addition, the government has increased the level of incentive to 40% of the cost of the vehicle. Previously, this was set at 20%.
Revised prices of TVS iQube
With the changes to the FAME-II subsidy program, the on-road price of iQube is now 11,250 rupees lower than before. iQube is currently offered in Delhi and Bangalore. In Delhi, the effective road price fell to 1.01 lakh.
In comparison, Bengaluru customers will have to pay Rs 1.10 lakh. The cost is lower in Delhi because the state government provides additional subsidies for electric vehicles. Promoting the use of electric vehicles is an integral part of the overall plan to reduce pollution in the National Capital Region.
With a significant price reduction, iQube can be in an advantageous position over its 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. The Chetak Urbane and Premium variants are available at Rs 1.43 lakh and Rs 1.45 lakh, respectively.
Chetak is currently not eligible for an increased grant, as it has not yet been approved under the FAME-II program. It will have to continue with its current prices. For this reason, Chetak prices are now at the same level as those of the Ather 450X.
Ather was the first electric two-wheeler manufacturer to announce lower prices due to increased subsidies. 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 rising subsidies couldn’t have come at a better time for iQube. This is because TVS is currently working to introduce iQube in 20 new cities. With lower prices, it might become easier for the business to attract customers. 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 on launching Chetak in new cities. Bajaj plans to cover around 30 new cities by the end of this fiscal year. Ather is already ahead of the game, having launched his scooter in more than a dozen cities. Other locations will be covered in the coming months.