The Society of Manufacturers of Electric Vehicles (SMEV), which represents Indian EV manufacturers, has contacted the Minister of Commerce and Industry, Piyush Goyal, seeking assistance for the EV industry. SMEV raised concerns regarding the embargo on utilizing FAME subsidies through the official NAB portal and the unresolved outstanding subsidy amount of Rs 1,200 crore owed by the Ministry of Heavy Industries (MHI). The letter emphasized that the accumulation of unpaid dues, the prohibition on sales listings, and the recovery notices for past subsidies have created a crisis within the industry.
SMEV’s Director General, Sohinder Gill, emphasized the importance of supporting these domestic companies, which embody the spirit of “Make in India” and “Start-Up India,” fueled by Indian investments and enterprises. Gill expressed concerns that the failure or distressed sale of these EV companies would reflect poorly on Indian enterprise and the government’s plans for E-Mobility. The letter also highlighted the international scrutiny of this situation by investors, with banks and financiers unwilling to provide credit.
The industry body conveyed that the unfavourable circumstances, coupled with a disregard for the financial condition of original equipment manufacturers (OEMs), prompted their appeal for the Minister’s support. SMEV believes that the Minister’s understanding of the business cycle, industrial production processes, and financial cycles will enable him to comprehend the impact of disruptions on businesses when these cycles are interrupted.
SMEV stressed that delayed vendor payments across the EV ecosystem have reached an alarming level. Employees in these companies face job insecurity, with deferred or delayed salaries, and dealerships are on the verge of collapse. The Association appealed for the Minister’s intervention and requested a meeting to discuss strategies for overcoming this crisis. Earlier, SMEV had also urged Niti Aayog to review the FAME policy.
