Electric OEMs highlight disparity in Govt’s treatment of their case.

Date: 04 Aug 2023

In an effort to resolve pressing issues and restore confidence in the Indian EV industry, the SMEV has written a letter to Minister of Heavy Industries Mahendra Nath Pandey, seeking equal treatment for electric two-wheeler OEMs in the matter of FAME subsidies.

The newly appointed Chief Evangelist [Hony] SMEV Sanjay Kaul, highlighted three critical issues causing distress among E2W Manufacturers in the industry. The letter emphasises the importance of intervention to foster constructive dialogue and addresses the following points:

Broad classification of non-compliance and unscientific investigation methods:

The OEMs have expressed concern over the classification of non-compliance issues and the use of unscientific investigation methods. SMEV believes that these punitive actions are disproportionate to the alleged transgressions. The letter suggests a thorough review of the testing procedures and certification protocols to ensure fairness and transparency for all OEMs.

Unjustified subsidy recall:

SMEV raised objections to the recall of subsidies already disbursed to OEMs after due clearance by the MHI. This, according to the organization, points to flaws in the testing procedures and certification process, which are beyond the OEMs' control. The letter proposes that if the subsidies need to be recovered, the OEMs are willing to facilitate the process by recovering them from customers and returning them to the Department, once approved.

Lack of parity in prescribed penalties:

The letter highlights the lack of consistency in penalties for OEMs. Recently, certain OEMs were granted a refund to customers as per the MHI's discretion to resolve issues of misuse and non-compliance, which were resolved within 45 days. In contrast, other OEMs have faced significant delays in receiving their due subsidies, and they are being asked to return the entire reimbursement received till date. This disparity in treatment raises concerns about partiality.

The letter calls for equal treatment for all OEMs, without any distinction between overpricing violations and technical disagreements over PMP guidelines.

The industry body believes that addressing these key concerns will not only foster a positive environment for the Indian EV industry but also strengthen the country's efforts towards sustainable transportation and a greener future.

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