EV makers in a bind as subsidy portal yet to get off the ground
OEMs can’t pass on discount to customers without uploading certificates
April 1 is here but manufacturers of electric twowheelers (e2W) and threewheelers (e3W) are still mired in confusion regarding the continuation of discounts for customers under the Electric Mobility Promotion Scheme (EMPS) 2024.
The scheme, set to commence on April 1, promises a subsidy of up to ₹10,000 per e2W and ₹25,000 per e3W, with heavy e3Ws (autos and commercial units) eligible for up to ₹50,000 subsidy.
The government, in a Gazette notification on March 13, notified the EMPS 2024 with an outlay of ₹500 crore so that the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India (FAME) scheme could continue in another form till July.
However, the portal in which companies have to register their certificates to avail of the subsidies is not yet ready. In its absence, companies will not be able to
NO CLARITY
In the interim Budget earlier this year, the government did not mention any extension of the FAMEII scheme
Through a Gazette notification on March 13, the government notified EMPS 2024 with an outlay of ₹500 crore, but limited the scheme to only e2Ws and e3Ws
To avail of the scheme, OEMs need to register vehicle certificates on a portal which the Ministry of Heavy Industries was to provide, but as of March 31 no such portal exists
pass on the benefits to the customer. This may seriously impact sales, sources told businessline.
The Ministry of Heavy Industries has to launch this portal so that the OEMs can upload the Automotive Research Association of India or International Centre for Automotive Technology (ARAI/ ICAT) certificates to get the discounts. Only after these certificates are up
loaded can the OEMs pass on the subsidy available under the scheme to the customers.
“The worry for us and the entire industry is that when the customers come on April 1 to buy an electric twowheeler or threewheeler, how do we offer a discount of ₹10,000 for the twowheeler and ₹20,000 for the threewheelers. We don’t have any goahead or clarification from the government. What do we do? Neither the dealer nor the company would give any discount from their pockets,” a senior executive in one of the leading OEMs told businessline.
“The customer will certainly say that there is a government scheme which is in the public domain, so why are we not giving the discounts? We need some clarity from the government on this at the earliest,” said the executive.
Also, there is a delay in the payment of FAME subsidies, which come with a lag of twothree months for most of the companies, industry sources said. OEMs including Ola Electric, TVS Motor, Hero MotoCorp, Ather, Kinetic Green, Bounce and Mahindra Last Mile Mobility are concerned about the continuation of discounts in the absence of the portal.
Formal queries sent to Kinetic Green and Mahindra Last Mile Mobility did not elicit any official response. “At this point in time, we are not commenting,” a spokesperson at Mahindra Last Mile Mobility said.