Yeah GST reduction will reflect in lease price. Last time during subsidy increase they didn’t reduce the monthly due instead reduced the final price for whom decided to retain the vehicle after lease. That’s completely unfair.
This time they should reduce the monthly due.
Firstly, the reduction of GST from 12% to 5% for EV is still a proposal which will need to be accepted by the GST council.
Once the policy is through, it would be worth checking with Autovert on how they plan to pass on the cost differential to the customer.
The 1.5L tax deduction on interest would only be applicable for loans and not lease imo. Also, for a 2W, I think there will be hardly any tax savings given the small monthly interest payments. It would make sense if you are buying a 26L Hyundai Kona EV on a loan.
1.5 Lacs Tax deduction makes the 15.4% interest rate to 10.8% if you are in 30% tax slab. That makes it loan cheaper.
One more thing:
Can the customer choose any other loan partner instead of Hero. Because for most corporates, the salary account bank might give better rates. I remember HDFC giving 12% for our org for two wheeler loans above 1L.
In such case, this tax deduction makes the effective interest rate from 12% to 8.4%
At 8.4%, you are getting literally interest free EMI (assuming you are going to get 8.4% in FD or any equivalent instrument)
GST reduction from 12% to 5% made Ather cheaper.
The last I enquired, the interest was at 8.5% from Honda finance. The interest is tax deductible, however the sales person at Ather couldn’t confirm this.
I have pre ordered the bike in Bangalore and waiting for Sep for delivery.
Lucky you!
It cost me nearly more than ₹10,000 extra…
For you, you have relatively less waiting time and the same product is cheaper…
I am yet to get… But, really so many typos from a public organization, in the age of auto corrects…
Excellent observation… 
I too received it…
Guys i went to test drive Nexon EV today, there the sales rep told that the subsidy on EV might be taken off by the government, and hence the prices might increase from April 2020.
I am not sure whether it was a sales gimmick or a real speculation? As I have not come across any news rated to this. Any confirmation would be helpful.
Sales gimmick. Under FAME 2, There is NO subsidy on personal EV 4 wheelers. Only if you are a fleet operator do you get subsidies.
Which dealer was this?
Ohh. Thanks I did not know that its not for personal 4 wheeler EV. However this was KHT motors, AECS Layout, Brookefield.
@Ather.Team @abhishek.balaji Is person who got FAME -1 subsidy for scooter is eligible for FAME 2 Subsidy for scooter?
https://www.fame-india.gov.in/ModelUnderFame.aspx
what is this exactly?? This subsidy goes to ather directly and they reduce the cost or we have to apply for the same and get back the amount?
No. You are eligible for an EV subsidy once per 2w and once per 4w purchase. The subsidy is linked to your Aadhar card and hence easily traceable for any misuse.
It goes to Ather and they sell the vehicle taking the subsidy into account. You need not apply and get back that amount. you’ll however need to sign a document for that. You’ll also have ot submit an Aadhar card as subsidy is linked to Aadhar
Although this is a Gimmick, the subsidies will eventually go once Electric vehicles become the majority (of sales) in future. Subsidy is a catalyst for faster adoption and to set off the initial high cost of any new product.
@Ather.Team, i have not used my subsidy even once but does 450x gets the eligibility ? Either for this reason, u should bring the vehicle under 1.5L.
Ather team have told multiple times now that the 450x will be eligible for FAME 2 subsidy. in FAQs, in Individual questions, in Open houses! The vehicle OTR prices shown includes the subsidy of ₹29000. The price of the vehicle eligible for the FAME subsidy (without home charger) is less than 1.5L and 450x owners will get subsidy
