Capital crunch hits production of electric 2-wheelers
The suspension of subsidy payment under the government’s programme for promoting electric vehicles has forced several electric two-wheeler makers to go slow on production and some marginal players to shut shop, industry insiders said.
The government is investigating allegations that some electric two-wheeler makers had availed of the subsidy benefit without meeting the condition on the use of local components as specified under Phase 2 of the Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) programme. In their submissions to the government, the companies have denied any wrongdoing, ET reported last month.
