In Short:
Revolt Motors and Greaves Electric Mobility face challenges availing subsidies under FAME-II scheme in India, impacting customer discounts. OEMs need to meet guidelines, returning subsidies for non-compliance. Despite penalties paid, names not back on government portal for benefits. Revolt optimistic about certification soon, while Greaves silent. FAME-II scheme ended, EMPS launched for electric two and three-wheelers, offering subsidies to promote EV adoption.
Electric Two-Wheeler Manufacturers Struggle to Reap FAME-II Benefits
It seems like not all electric two-wheeler manufacturers in India are having an easy ride when it comes to reaping the benefits of the Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles (FAME-II) scheme. Companies like Revolt Motors and Greaves Electric Mobility (Ampere) have hit a roadblock in getting their names back on the government’s portal to avail the subsidies, despite paying the penalties.
Long Road to Subsidies
According to sources close to the development, these companies are facing challenges in passing on the subsidies to customers while selling their electric two-wheelers, as they are still awaiting re-certification under the FAME scheme. Both companies had applied for re-certification in December after refunding the entire incentive amount with interest to the Ministry of Heavy Industries (MHI).
- Also read: Greaves Electric Mobility launches Ampere Nexus at ₹1.10 lakh
Violations and Penalties
The trouble stems from show cause notices sent to seven original equipment manufacturers (OEMs), including Greaves Electric Mobility and Revolt Motors, for violating FAME-II guidelines by not meeting the requirement to source 50 per cent of raw materials from Indian manufacturers. Despite paying the penalties, including interest, the companies are still waiting for their names to be reinstated on the portal to avail the benefits.
- Also read: Government likely to release guidelines on new EV policy in next 3-4 weeks
Hope on the Horizon
Revolt remains hopeful of receiving certification soon, while Greaves Electric Mobility has yet to respond to queries. Both OEMs are currently selling their electric vehicles without discounts due to the absence of subsidies. An official mentioned that some confusions and reasons have delayed the process of getting their names back on the portal.
New Scheme on the Horizon
With the FAME-II scheme ending on March 31, the government has introduced the Electric Mobility Promotion Scheme, 2024 (EMPS) with a total outlay of ₹500 crore to promote the adoption of electric two-wheelers and three-wheelers.
