Why are more and more EV scooter makers coming under the scanner?

EV scooter makers: If you come to think of it, then you’d recount that there was a time where one desperately awaited an all-electric future for cars and scooters in India. However, such a time prevailed in the past. 

Today, arguably, 1 in every 5 car or scooter operating on the mad, busy or cluttered Indian roads is electric.

Surely, the EV-driven revolution is yet to completely consume car and bike or scooter owners in its full wake, but bit by bit, purchase upon purchase, the change is quite visible. 

It’s here. It’s in the ‘now.’ And it cannot be denied or undermined. 

Yet, what exists in parallel to the high (or kick) of riding a soundless, smoothly functioning and clean drive such a pure EV on four or two wheels are a bunch of technical or even operational problems on the part of the brands that have caught the eye of the vigilant Indian authorities.

It appears as though at a time where problems related to the motor of the EV scooters that led to sudden bursts of fire or similar hazards weren’t already enough to trouble their manufacturers, a new bout of problems have suddenly crept up.

These have led to probes, truth be told, on the part of the Indian government that are on as you read this article.

That being said, let us dive straight up into the main question: what is the latest issue pertaining to some of the most recognized makers of electric scooters in India and what seems to have been the issue plaguing them all?

Without wasting any further time, let’s delve into a piece of news report that was published by the Indian Express on January 20, 2023 on the said matter:

With another half a dozen electric two-wheeler makers being investigated, the government has widened its probe of companies that have wrongfully claimed sops under the FAME II scheme.

In all, the government is now looking into the operations of around 18 companies to determine if the subsidies were rightly claimed. The total amount of subsidy withheld has crossed Rs 1,000 crore, according to persons familiar with the development.

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.

Furthermore, it is believed that tax or audit bodies want to have a clear look into the books of accounts of several leading EV scooter makers in order to establish whether there has been any misappropriation of the subsidies that some leading brands have claimed under the scheme. 

Meanwhile, it is worthwhile to note that the subsidies being made on offer range from INR 17,000 upto INR 60,000 per electric two-wheeler. Yet, at the same time, there’s concern even amongst battery makers of these scooters who suggest that unless and until the matter related to the claim of the subsidies shall not be resolved, one may not really expect any uptick in the demand.

So what happens next? Watch this space for more as EV247 will bring you regular and fresh updates as and when possible!