Electric OEMs highlight disparity in Govt’s treatment of their case.
Date: 04 Aug 2023
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.
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:
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:
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:
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
letter calls for equal treatment for all OEMs, without any distinction between
overpricing violations and technical disagreements over PMP guidelines.
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.