Homegrown auto major Mahindra & Mahindra has slashed the price of its electric small car ‘e2o’ by Rs 92,000 following the launch of a central government scheme offering incentives on electric and hybrid vehicles.
The e2o, manufactured by the company’s arm, Mahindra Reva Electric Vehicles will see a reduction in price by 16 per cent from its earlier price of Rs 5.71 lakh (on road Delhi) along with a fixed energy fee of Rs 2,999 per month for five years or 50,000km.
The car will now be available at Rs 4.79 lakh (on road Delhi), while the fixed energy fee remains the same.
“We have reduced the prices of e2o by 16 per cent across the markets where it is being sold currently. The reduction makes the car more affordable and attractive to own,” Mahindra & Mahindra president & chief executive (automotive) Pravin Shah
The price cut is a direct result of the government’s recent announcement of the FAME (faster adoption and manufacturing of hybrid and electric vehicles) scheme, he added.
Under the FAME scheme, the government offers incentives on electric and hybrid vehicles of up to Rs 29,000 for bikes and Rs 1.38 lakh for cars.
FAME is a part of the National Electric Mobility Mission Plan. The scheme envisages Rs 795 crore support in the first two fiscals starting with the current year.