India’s leading electric two-wheeler maker, Hero Electric on Friday said it has slashed prices for its popular models by up to 33 per cent following enhanced subsidies under FAME II scheme.

In response to the amendments to the Faster Adoption and Manufacturing of Electric Vehicles (FAME II) policy in India, Hero Electric said it is passing on the cost benefit to customers.

The decrease in prices ranges from 12 per cent for single battery variants to 33 per cent for the triple battery NYX HX model, said Hero Electric in a statement.

Under the new prices, the Photon HX model will be available at Rs 71,449 as compared to Rs 79,940 earlier and the NYX HX (triple battery) will come at Rs 85,136, down from Rs 1,13,115 earlier.

The Optima ER will now be available at Rs 58,980 as compared to Rs 78,640 before, said the company.

Sohinder Gill, the CEO of Hero Electric, said, "The revision in subsidies on batteries and EVs overall under the FAME policy is just the move the industry needed to drive adoption of electric vehicles."

“Having had one of the best years in terms of sales despite the pandemic last year is testimony that the market is ripe for a major push towards shifting to a cleaner mobility solution,” he added.

Gill also said Hero Electric has seen a major spurt in the adoption of its 'City Speed Series' — high speed electric scooters — in the last two years, and with this additional subsidy, multi-fold increase in sale of such models is expected.

"With such industry friendly moves from policy makers, we expect the market to further touch 5-7 million units on road over the next 5 years," added Gill.

In the recently modified FAME II scheme, the Ministry of Heavy Industries had increased demand incentives on electric two-wheelers to Rs 15,000 per kWh, against Rs 10,000 per kWh uniform subsidy available earlier.

The government had also increased the cap on incentive to 40 per cent of the cost of the electric two-wheeler, as against 20 per cent earlier.