Highlights
- Ather Energy, TVS and Hero MotoCorp to pay out over Rs 290 crore to customers for overcharging for portable chargers
- MHI continues its investigation along with other government bodies, ICAT and ARAI, to look for FAME II subsidy violations
- The total cumulative value of recoveries is estimated to be over Rs 800 crore
After Ola Electric, Ather Energy, TVS and Hero MotoCorp have been summoned by the Ministry of Heavy Industries (MHI) for violating the FAME II subsidy guidelines. The three major EV makers in India have come under the scrutiny of the Government of India body for charging for portable chargers to become eligible for aid. The companies have now agreed to pay out a total of approximately Rs 292.23 crore to their customers as reimbursements.
MHI has also received inputs from other Government bodies such as the International Centre for Automotive Technology (ICAT) and the Automotive Research Association of India (ARAI) which have been investigating the FAME II subsidy violation issue. The government is looking to recover over Rs 800 crore.
Ather, TVS and Hero MotoCorp come to reimburse customers with over Rs 290 crore
- Recent developments suggest that the Indian Government will be looking to resolve a Rs 1,500 crore subsidy violation with the help of MHI, ICAT and ARAI.
- After Ola Electric, popular EV brands Ather Energy, TVS and Hero MotoCorp have now come under the MHI radar for overcharging consumers by selling portable chargers separately. Portable chargers are supposed to be part of the vehicle price.
- Earlier, Ola Electric had announced that it would be reimbursing customers for the additional charges that were subjected to by selling the portable charger separately with an approximate total payout value of Rs 130 crore.
“There is a need for all sustainability and clean energy stakeholders to come together and support India in becoming a world leader in the green energy transition” said Tarun Kapoor, advisor to the Prime Minister of India, in response to India’s slowing EV industry
- Ather Energy has now agreed to pay out Rs 140 crore as a refund to MHI. The Bengaluru-based startup will reimburse due amounts to 95,000 customers who purchased an Ather 450X between January 1 and April 12, 2023.
- MHI will also recover an additional Rs 25 crore from Ather Energy after the manufacturer was found guilty of selling EVs with a reduced battery capacity for customers who didn’t opt for the advanced software package.
- TVS has agreed to payout Rs 15.61 crore to 87,000 customers who purchased the TVS iQube between May 2022 and March 2023.
- Hero MotoCorp will reimburse Rs 2.23 crore to 1,100 customers who purchased Vida V1 e-scooters from the start until March 2023.
