Indian Government Seeks Rs 469 Crore From 7 Electric Two-Wheeler Makers For Alleged Incentive Violations


The Indian government has demanded Rs 469 crore from seven electric two-wheeler manufacturers, including Hero Electric and Okinawa, for allegedly claiming incentives without adhering to the norms of the Faster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme, as stated by a government official.

An investigation by the heavy industries ministry revealed that these companies obtained fiscal incentives by violating the scheme’s rules, which required the use of domestically manufactured components for electric vehicles.

However, the investigation found that these seven firms used imported components instead. The government has given them a 7-10 day window to refund the amount; otherwise, they will be removed from the scheme, disqualifying them from future participation.

The seven companies are Ampere EV, Amo Mobility, Benling India, Hero Electric, Okinawa Autotech, Revolt Motors, and Lohia Auto.

Out of the seven companies, two have already informed the ministry of their intention to return the incentives with interest. The government clarified that while these companies can continue manufacturing vehicles, they will no longer receive incentives under the FAME-II scheme.

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A representative from Greaves Electric Mobility (GEM) expressed that their company was among the earliest supporters of the government’s initiative to promote local manufacturing. They are actively cooperating with the government to gain a better understanding of their concerns, and they have already submitted a comprehensive representation in this regard.

Ayush Lohia, the CEO of Lohia Auto, asserted that they have not been officially informed or notified by any government department or authority regarding the withdrawal of subsidies. Furthermore, they are unaware of the source of the information that implicates Lohia Auto Industries in this issue.

The scheme, launched in 2019, aims to promote electric and hybrid vehicles and bolster domestic manufacturing in the sector.

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