In a notice issued by the Ministry of Heavy Industries (MHI), the Government of India asked Okinawa and Hero Electric to show supporting documents on whether the components used in their Electric Vehicles (EVs) are primarily locally sourced. The FAME (Faster Adoption and Manufacturing of Electric and Hybrid Vehicles) II subsidy will not be available to these EV manufacturers until the supporting documents are shared.
The Micromax co-founder Rahul Sharma’s Revolt Motors and Coimbatore-based EV manufacturer, Ampere Vehicle, have also received similar notices. As per Ampere, audits have already been conducted at its factory, and the government had given it a clean chit.
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For those who aren’t aware, the FAME II subsidy provided by the central government can be availed only if more than 50 per cent of the EV components are locally made. Hence, if these EV makers are found making fake localization claims, they will be fined heavily. This can be recovered from future subsidy dispersals. Also, if this happens, there will be a huge increase in the prices of their electric two-wheelers. Given the increasing competition in the EV sector, this could impact their sales as well.
