Will electric 2-wheeler companies shut down, this is the situation after the subsidy is over


auto news desk, At present, Indian electric two wheeler companies are facing a big crisis. This crisis is so big that only big companies can save themselves from it. The production of battery-powered two-wheelers (electric scooters) has come down significantly after the government discontinued the subsidy (FAME 2 subsidy) to promote electric vehicles (EV). At the same time, some small companies are on the verge of shutting down the business. Some electric two-wheeler companies are under investigation. According to media reports, these companies are accused of not using components made in India to make two-wheelers to take advantage of the subsidy. That’s why the government has started investigating these companies.

unreasonably low prices
To avail the subsidy under the Faster Adoption and Manufacturing of Electric Vehicle Phase 2 (FAME II), it is necessary that components made in India be used to make the EV. However, the EV companies have clarified to the government that they have done no wrong. Meanwhile, the government is also probing the allegation that some companies have unfairly reduced the prices of electric two-wheelers to avail subsidies. is kept These companies are charging the cost of charger and software by deducting the bill separately.

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Subsidy to 26 companies
At least 26 electric two-wheeler companies are eligible for the subsidy under the National Motor Vehicles Board portal. Sohinder Gill, director general of the Society of Manufacturers of Electric Vehicles (SMEV), said that the sales of 11 of these companies are more than 90 per cent of the total sales. These 11 companies are facing probe in a single case.

subsidy deadline
These companies have already given the benefit of subsidy to the customers, but now the government has stopped their subsidy. Due to the closure of subsidy, these companies are facing shortage of money. Anyway the subsidy will stop after March 2024. In such a situation, the coming time is very challenging for EV companies and customers will also have to pay a higher price for the electric two-wheeler.

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