Govt To Audit Okinawa And Hero Electric For Fame II Subsidy Compliance
The EV manufacturers won’t get the subsidy benefits until further notice
According to a report, EV manufacturers like Hero Electric and Okinawa have come under the scanner of a government audit probing just how local their EVs are. Until the documents supporting the subsidies claim have been shared, the EV manufacturers will not be beneficiaries of the Fame II (Faster Adoption and Manufacturing of Electric and Hybrid Vehicles) scheme.
Manufacturing electric two-wheelers is a costly affair. However, with the help of subsidies provided by the Union government (and to some extent State governments), EVs have become more affordable for the end user.
These subsidies can only be received after certain conditions are met. For the Fame II scheme, those conditions are that more than 50 per cent of the EV components should be locally made.
Reportedly, the subsidies will be restored once the documentation is submitted and is seen to be in compliance with the localisation claims.
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Apart from Hero Electric and Okinawa, even Revolt Motors and Ampere Electric have received similar notices from the government. While Ampere has said it has been audited and has received a clean chit from the government, Revolt reportedly has not responded to the press.
So, if the EV manufacturers fail to get the subsidies in question, the prices for their electric two-wheelers will go up drastically. Considering the increase in competition in the EV space, this could affect both brands' sales.