Indian EV maker denies accusations of abusing incentives
India’s Avon Bicycles Ltd. has denied any wrongdoing in a scheme to offer subsidies to automakers to boost sales of electric vehicles (EVs), after the government said it was among those under investigation for misappropriation.
The Government of India is compensating manufacturers of electric and hybrid vehicles for reducing the purchase price of their vehicles under the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME) scheme.
Heavy Industries Minister Mahendra Nath Pandey told parliament on Tuesday that 12 electric vehicle and parts makers, including Avon Cycles, have been charged for violating 100 billion rupiah ($1.21 billion) planned guidance policy complaints.
The other companies named by Pandey did not respond to Reuters’ requests for comment.
Pandey said two of the 12 companies were suspended from applying for incentives following the investigation.
Avon Cycles said in an email Thursday that the program does not cover any two-wheelers and that its three-wheelers that qualify for the program “fully meet the eligibility criteria.”
“Currently we only exist in the low-speed category of two-wheelers, which means we don’t have any two-wheeler models covered in the FAME – Phase 2 scheme, so ‘Avon Cycles’ is not applying for limited subsidies in the two-wheeler segment’, ’ the company said in a statement.
“We do have two three-wheeler models that are eligible for the FAME – Phase II scheme, which fully complies with the eligibility criteria set by the relevant authorities. Also, sales of these three-wheeler models sold under the said scheme have been negligible so far.”
India wants to grow its EV market from 1 percent of total car sales (about 3 million units a year) to 30 percent by 2030.
($1 = 82.8300 Indian Rupees)
(Aside from the title, this story is unedited by NDTV staff and published via a syndicated feed.)
Featured Video of the Day
Markets soar more than 1%, close at record highs
