200 e-bike dealers, including Hero Electric and Ampere Vehicles, are planning to stop the operations in the next few months as they are affected by the demand of the customers and the lower subsidy from the FAME-II scheme.
200 e-bike dealers to shut, includes Hero Electric & Ampere Vehicles
According to SMEV, the dealers indicated that they have to stop their business, shut their shops in the next few months as the customers are demanding that they do not want e-bikes (electric two-wheelers) without subsidy.
200 e-bike dealers-loss of a job of around 1,200 people
If these companies stopped the operations there will a loss of job of around 1,200 people.
SMEV (Society of Manufacturers of Electric Vehicles) Reports
As per the SMEV (Society of Manufacturers of Electric Vehicles) Reports the total sales of EVs in the FY 2018-19 was 7,59,600 units which include the sales of electric two-wheelers was 1,26,000, electric three-wheelers was 6,30,000 and electric four-wheelers were 3,600.
During FAME I sales of EVs increased
The sales increased to 130 percent growth of electric two-wheelers, growth of four-wheelers is 200 percent and three-wheelers growth is reached to 21 percent.
The total number of EVs sold in FY 2017-18 are 5,76,000 and the total EVs sold in FY 2018-2019 are 7,59,600. With this data, we can make out that EVs sales increased during the FAME’s Phase I.
Electric cars have the highest number of sales during FAME I
We can see Electric cars have the highest number of EVs sales and next to it comes the electric two-wheeler and three-wheeler.
In FAME Phase II sales of EVs decreased
But from when the FAME Phase II has started, the sales of EVs have come down. In electric two-wheeler segments, only three to four e-two-wheeler are eligible under the scheme.
SMEV, DG Sohinder Gill said,
The Society of Manufacturers of Electric Vehicles (SMEV) DG Sohinder Gill said, “While volumes have fallen significantly, the working capital and employee costs will remain the same and with time, the fixed costs will grow, making the business unviable for dealers.”
Under FAME II subsidy of Rs 10,000 for battery strength of 1 kiloWatt
under the FAME II (Faster Adoption and Manufacturing of Hybrid & Electric Vehicles) scheme the e-bikes get the subsidy of Rs 10,000 for battery strength of 1 kiloWatt, whereas in FAME I there was no such conditions kept for the two-wheelers and offered a subsidy of Rs 20,000.
EVs became costlier
When looking at the rules and conditions, the electric two-wheelers with only 10,000 subsidies become costlier. It leads to only four to five electric two two-wheelers certified under the FAME II scheme.
Companies have to sell the EVs without claiming the subsidy which results in the EVs to be more expensive, an official electric two-wheeler manufacturer told.
FAME I scheme (April 2015 to March 2019) around 5,000 units sold every month
But if you see during the FAME I scheme (April 2015 to March 2019) around 5,000 units certified on an average every month.
Example-If an electric two-wheeler costs Rs. 80,000
For an example of an electric two-wheeler’s cost is Rs. 80,000 and it would have sold in 60,000 as the subsidy amount was 20,000 in Phase I whereas the same vehicle will be sold at Rs 70,000 after claiming Rs.10,000 subsidy amount and without subsidy, the e-bike will cost again 80,000.
FAME II Govt mandated 50% of local content, Min acceleration of 0.65m/s,
During FAME I, there was no such norms, but now for the FAME II the government has made it compulsory to have a minimum acceleration of 0.65m/s and the vehicles must have 50% of local content to get the subsidy.
Most components used in EVs imported from other countries
But if we practically look at the Indian market situation that most of the components used in EVs are imported from other countries.
It is very difficult to maintain the production to 50% local as the Lithium-Ion battery and motor are the man components are imported along with some other components.
Electric two-wheeler companies
The companies who are into making the electric two-wheeler segments are Mahindra, Okinawa, Ather Energy, Avan Motors, Lohia Auto, Electrotherm, Ajanta, TVS, Ampere, Chris Motors, Jitendra, Tunwal, Supereco, Shema E-Vehicle, Nibe Motors, NDS ECO Motors.
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