The number of electric 2-wheelers sold under FAME-II has been slashed from 9.89 lakh units to 5.64 lakh units.
The government of India has revised the number of electric 2-wheelers sold under the FAME-II scheme from 9,89,000 to 5,64,000 units; after it was found that every second electric 2-wheeler sold under the scheme was based on false localization claims. The government has withheld subsidies worth Rs 1,400 crore for over 4 lakh electric 2-wheelers sold under the FAME-II scheme since April 2022.
The government had aimed to offer subsidies to 10 lakh electric 2-wheelers by April 2024. However, an investigation conducted by the Automotive Research Association of India (ARAI) found that multiple companies were relying on imports of key components like electric motors, controllers and onboard chargers.
FAME-II required companies to gradually increase the number of locally sourced parts to ensure that the subsidy was being used to promote local manufacturing. It is said that EV makers provided incorrect information about locally sourced parts to qualify for the subsidy.
Source: ET Auto
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