Sales and production of electric two-wheelers are set to take a hit just when the demand was rising, with the government stalling subsidy disbursal amounting to ₹1,000 crore to half a dozen companies including Hero Electric and Okinawa Autotech.
Subsidy payments were to be made under FAME-II (Faster Adoption and Manufacturing of Electric Vehicles) initiative, the government’s flagship incentive scheme aimed at boosting manufacturing and sales of electric vehicles (EV). But the payments have stopped since April 2022 due to alleged violations of local value addition criteria under the scheme.
