Seven electric two-wheeler companies have collectively incurred losses of over Rs 9,000 crore due to non-payment of dues and loss of market share after the subsidy was discontinued. The Society of Manufacturers of Electric Vehicles (SMEV) gave this information on Wednesday. The government has directed these companies to return the subsidy given to them
audit findings
According to SMEV, its chartered accountant’s audit indicates that the cumulative loss to the affected companies is estimated to be over Rs 9,000 crore. SMEV’s ‘Chief Evangelist’ Sanjay Kaul said that many of these companies may never recover from this. In a letter to Union Minister Mahendra Nath Pandey, he said that OEMs (Original Equipment Manufacturers) are reaching the point of ruin due to increasing losses everyday.
Government stopped subsidy
Kaul said that the letter proposed that if the ministry’s intention was to punish these OEMs, it is now practically eliminating them. This sentence has continued for more than 22 months which is a crime in itself. The government has sought withdrawal of subsidy from Hero Electric, Okinawa Autotech, Ampere EV, Revolt Motors, Benling India, Amo Mobility and Lohia Auto.
These companies violated the rules in the investigation
In the investigation of the Ministry of Heavy Industry, it was revealed that these companies had violated the rules and took advantage of the fiscal incentives under the scheme. As per the rules of the scheme, incentives were allowed to produce electric vehicles using ‘Made in India’ components, but investigation revealed that these seven companies allegedly used imported components. Did.