Indian electric two-wheeler maker plans to refund Rs 10 crore to customers to be eligible for FAME II incentives. EV makers such as Ola Electric, Ather Energy, TVS Motor and Hero MotoCorp plan to refund the cost of their attached EV home chargers as well as the cost of their two-wheelers. According to a Mint report, the move is seen as an attempt by EV makers to secure Centre’s incentives, which have been delayed for months.
EV makers have reportedly been charging for EV chargers separately from customers.The trick is to allow buyers to enjoy FAME rewards, which are available at prices up to ¥150000.The government has stopped issuing value subsidies ¥8 billion after the vulnerability was discovered. Since then, most EV manufacturers have made amends and now offer EV home chargers as part of the vehicle invoice.
The biggest setback will reportedly come to Ola Electric.The maker of electric two-wheelers, which began operations in 2021, will reportedly refund the value ¥1.3 billion to customers who are required to pay for the home charger that comes with the S1 and S1 Pro electric scooters. Ola Electric has not issued any statement regarding the refund or the exact amount.
Neither Ather Energy, TVS Motor or Hero MotoCorp issued any statement or clarification on the development. The total amount of the refund is not yet known.However, according to the Society of Manufacturers of Electric Vehicles (SMEV), the center owes almost ¥12 million to electric car manufacturers.
The center has stopped providing FAME benefits to electric vehicle manufacturers after discovering the violations. At least two electric two-wheeler manufacturers have been suspended from receiving incentive benefits for not meeting localization norms, which are part of the criteria to qualify for FAME subsidies.
The future of FAME II subsidies is also uncertain. The extension of the FAME II subsidy scheme was one of the main demands made by the Indian auto industry ahead of the Union Budget earlier this year. Stakeholders from all walks of life, including automakers, component makers and charging infrastructure developers, wanted tax breaks, benefits and incentives that did not materialize.
First published date: May 3, 2023 at 09:29 AM CST