Indian EV makers to lose Rs. 9,000cr over subsidy dues
What's the story
Seven Indian EV makers have suffered a combined loss of over Rs. 9,000 crore due to unpaid dues and market loss after their subsidies were halted, as per the Society of Manufacturers of Electric Vehicles (SMEV). An audit by SMEV suggests that some affected companies may wind up the business. The government has also directed these companies to refund the subsidies they received.
Reason
Subsidy refunds sought for importing components
The Ministry of Heavy Industries is seeking subsidy refunds from Hero Electric, Okinawa Autotech, Revolt Motors, and four others after an investigation revealed that these companies violated norms by using imported components. SMEV has proposed the creation of a "Sinking Fund" by the ministry to assist original equipment manufacturers (OEMs) facing closure through soft loans, grants, or other mechanisms to support the EV ecosystem.
Solution
SMEV urges swift resolution to save OEMs
SMEV Chief Evangelist Sanjay Kaul emphasized the need for a quick resolution, noting the irony of discussing a $1 billion investment in the Indian EV sector while losses already amount to nearly the same figure. He has further stated that the delay in addressing this issue is effectively destroying these OEMs and preventing them from conducting business at competitive prices.