TVS Motors has announced that it will issue refunds ¥200 million to customers of TVS iQube electric scooters under the Goodwill Benefit Scheme. The announcement follows compliance issues with the FAME II policy, which manufacturers have addressed by selling chargers separately. A refund is basically the cost of the charger being returned to the customer.
KN Radhakrishnan, director and CEO of TVS Motor Company, said in a statement: “As a responsible business, TVS Motor has fully complied with all government regulations stipulated by FAME. To further eliminate ambiguity and ensure a clear policy direction, TVS Motor Reputation benefit scheme will be provided to customers who pay more than the threshold limit stipulated by FAME. The overall cost impact to TVS Motors is less than Rs 20 crore.”
Also read: Ola, Ather, Hero and TVS refund EV charger fees to customers
An investigation by the Ministry of Heavy Industry (MHI) has found for the first time that electric two-wheeler manufacturers are charging extra for off-board chargers rather than bundling them with purchases of e-scooters.This has led to an increase in the asking price of electric scooters ¥150,000 (factory), exceeding the eligibility limit for FAME subsidies.
Not only TVS, but other electric vehicle manufacturers including Ather Energy and Vida also announced refunds and price cuts for their products.While not officially confirmed, it is said that Ola Electric is doing the same and will refund approximately ¥1.3 billion.
“TVS Motor is fully committed to the vision of the Government of India to promote electric vehicles and fully supports the Indian government’s initiatives to accelerate the adoption of electric vehicles, develop the electric vehicle ecosystem and in the spirit of Atmanirbhar Bharat, all electric vehicle development has been carried out in-house,” Radhakrishnan added.
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Note that the TVS iQube is still one of the most affordable electric scooters sold by mainstream players, the cost of a home charger is extra ¥9,450.However, considering that the total price rarely exceeds ¥The limit of iQube in most regions is 150,000, and the refund amount is the lowest among all OEM players. TVS has yet to announce an updated price for the iQube, which takes into account the cost of a home charger.
First published date: May 4, 2023 at 18:58 PM CST