Key Highlights
- Ather Energy, Hero MotoCorp, and TVS to reimburse customers for overpriced portable chargers.
- Violation of FAME II subsidy guidelines being investigated by the Indian Government.
- Ather to reimburse Rs. 140 crore to 95,000 customers; TVS to pay Rs. 15.61 crore to 87,000 customers; Hero to refund Rs. 2.23 crore to 1,100 customers.
- Total payout of approximately Rs. 292.23 crore to customers as reimbursements.
Ather Energy, Hero MotoCorp, and TVS Motor Company have been ordered by the Ministry of Heavy Industries (MHI) to reimburse customers who were overcharged for portable electric scooter chargers, making them eligible for government subsidies under the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME II) scheme. The three companies have agreed to pay a total of approximately Rs. 290 crore to their customers.
Violation of FAME II Guidelines
These companies were summoned by the MHI after Ola Electric was also found to be in violation of FAME II guidelines. The government accused them of charging customers for portable chargers instead of including them in the vehicle price. The MHI has received inputs from other government bodies like the International Centre for Automotive Technology and the Automotive Research Association of India, which have been investigating the issue of FAME II subsidy violations.
Also Read: OLA To Refund Whopping 130 Crores To Its E-Scooter Buyers: Who All Will Benefit?
Reimbursements for Overpriced Electric Scooter Chargers
Ather Energy has agreed to pay out Rs. 140 crore in refunds to the MHI. This amount will be reimbursed to 95,000 customers who purchased an Ather 450X between January 1 and April 12, 2023. The company will also pay an additional Rs. 25 crore to the MHI for selling electric scooters with reduced battery capacity to customers who did not opt for the advanced software package.
TVS Motor Company has agreed to compensate 87,000 customers who purchased the TVS iQube electric scooter between May 2022 and March 2023, for an amount of Rs. 15.61 crore. Similarly, Hero MotoCorp will refund Rs. 2.23 crore to 1,100 customers who purchased Vida V1 e-scooters from the start until March 2023.
Also Read: List Of Top Five Electric Scooters Loaded With Premium Features Under Rs. 1.50 lakh
FAME II Scheme Guidelines
The FAME II scheme aims to encourage the adoption of electric vehicles by providing incentives for their purchase. Under the scheme, electric scooters with a minimum speed of 40 km/h and a range of at least 80 km per charge are eligible for subsidies. The scheme provides a subsidy of up to Rs. 15,000 per kWh of battery capacity, subject to certain conditions.
According to the scheme guidelines, the portable charger should be included in the vehicle’s price and not sold separately. The government is trying to recover over Rs. 800 crore in subsidies that were wrongly claimed by various electric vehicle manufacturers.
