Hero Electric And Okinawa Under Government Scrutiny Over Localisation Issues

A recent audit has EV makers Hero Electric and Okinawa under scrutiny for not having sufficient proof to justify the localisation of its parts; and as a result, their FAME-II subsidies have been temporarily suspended.

Central government-backed subsidies on EVs have been a huge draw for many customers across India to get into the EV revolution. If a manufacturer wants to attract and offer FAME-II subsidies against its e-scooter, it must validate that the components used are largely localised.

A recent report claims EV makers Revolt and Ampere have also been summoned by the government to submit documents proving their adherence to localisation mandates. If they fail, their subsidies could be revoked, resulting in rise in product prices, which in turn could deter sales.

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A firm hand over EV makers, especially two-wheeler manufacturers, is required. The barrier-for-entry in that domain is low, and the chances of substandard or cheap-imported parts being pushed on our streets increases. EV fires from earlier this year are a classic example of how it can go very wrong.

We have reached out to Hero Electric for an official statement and will be updating this space as soon as we hear back from them.