FAME probe: Six more EV makers under scanner

In 2022, the government suspended the then market leaders, Hero Electric and Okinawa Autotech, from availing subsidies after they were found to be flouting localisation norms under the scheme. Sources said the government has now roped in accounting services firm EY to audit companies who claimed subsidies under the scheme.

“EY wants to check our books of accounts for any misappropriation of the subsidies we claimed under the scheme. While no subsidies have been released since April, they have asked for financials of October and November too,” a senior executive of a company whose subsidies have been stopped, said.

With companies not inclined to continue production without subsidies, production and despatches to dealers nosedived in December and January, manufacturers said. The subsidy ranges from Rs 17,000 to Rs 60,000 per electric two-wheeler.

Battery makers, whose order books were robust a year back, have reported a sharp dip in fresh orders. “Production has come down drastically over the past few weeks. Until there is clarity on subsidy, we do not see any uptick in demand,” said the owner of a battery making firm.      FE