What makes manufacturers refund so much
After a government investigation found that the country’s four main electric two-wheeler manufacturers breached standards by charging customers for chargers and proprietary software separate from the vehicle’s scooter, they have collectively paid around Rs 10 crores to customers over Rs 300. According to a report released by The Economic Times (ET), they agreed to a refund.
Earlier this year, the Center conducted an investigation that revealed that Ola Electric, Ather Energy, TVS Motor, and Hero MotoCorp had separately charged the chargers for their electric scooters as well as their proprietary software to reduce the selling price of their scooters. FAME is a program founded to help accelerate the manufacturing and production of electric vehicles, and it is eligible for subsidies under the program.
According to reports, the four companies are planning to refund Rs 305.61 crore to customers who bought the charger as an add-on to one of their vehicles. Approximately 157.78 crores of rupees must be paid by Ather Energy, 130 crores by Ola Electric, 15.6 crores by TVS Motor Company, and 2.26 crores by Hero MotoCorp.
Data provided by the government indicates that Ola Electric has refunded Rs 4.25 crore of its total reimbursement cost, while Ather Energy has refunded Rs 3.97 crore. TVS Motor Company refunded Rs 9 lakh, while Hero MotoCorp cleared most of its liability by refunding Rs 1.64 crore.
The government provides subsidies for the sale of domestically produced electric vehicles under the FAME scheme. On the other hand, electric two-wheelers priced above Rs 1.5 lakh are not eligible for the scheme.
The companies cited a lack of customer bank account details as one of the reasons behind the delay in customer reimbursements. However, officials said information on buyers is already available and the process by which companies issue refunds needs to be sped up.
FAME India Scheme could be of interest to many people who aren’t familiar with it, so let’s have a look at what it is.
FAME India Scheme
The Government introduced the Faster Electric Vehicle Adoption and Production (Hybrid &) program in India (FAME India) in 2015 under the National Electric Mobility Mission Plan (NEMMP) 2020, which sets out measures incentives to incentivize the purchase of electric vehicles.
The first phase of this program was implemented for two years and started on April 1, 2015. The program was subsequently extended and authorized until March 31, 2019. allocated to FAME 1.0, this amount has been used up.
The center has started the second phase of the FAME program with Rs 10,000 crore for three years. The program has begun on April 1, 2019.
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