India’s Avon Bicycles Ltd. has denied any wrongdoing in a scheme to offer subsidies to automakers to boost sales of electric vehicles (EVs), after the government said it was among those under investigation for misappropriation.
The Government of India is compensating manufacturers of electric and hybrid vehicles for reducing the purchase price of their vehicles under the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME) scheme.
Heavy industries minister Mahendra Nath Pandey told parliament on Tuesday that 12 makers of electric vehicles and components, including Avon Bicycles, were charged with violating the 100 billion rupiah ($1.21 billion) planned guidance policy complaints.
The other companies named by Pandey did not respond to Reuters’ requests for comment.
Pandey said two of the 12 companies were suspended from applying for incentives following the investigation.
Also read: Indian EV agency backs company scanned for alleged misuse of FAME subsidies
Avon Cycles said in an email Thursday that the program does not cover any two-wheelers and that its three-wheelers that qualify for the program “fully meet the eligibility criteria.”
“Currently we only exist in the low-speed category of two-wheelers, which means we don’t have any two-wheeler models covered in the FAME – Phase 2 scheme, so ‘Avon Cycles’ is not applying for limited subsidies in the two-wheeler segment’, ’ the company said in a statement.
“We do have two three-wheeler models that are eligible for the FAME – Phase II scheme, which fully complies with the eligibility criteria set by the relevant authorities. Also, sales of these three-wheeler models sold under the said scheme have been negligible so far.”
India wants to grow its EV market from 1 percent of total car sales (about 3 million units a year) to 30 percent by 2030.
First published date: December 23, 2022 at 13:44pm CST