These 4 EV Companies Will Get Rs 500 crore From The Government!
- by Nishaad Joshi
- May 10, 2023
- | Views: 2892
This comes days after these very companies were instructed to refund their customers
Four of the major electric mobility brands in India are all set to receive a total of Rs 500 crore from the Indian government. This comes days after not only Ola, but even TVS, Ather and Vida were asked to refund owners the money they paid for the chargers. So, what’s it all about?
For that, let’s begin with why these companies had to reimburse their customers. Well that was because these EV makers had been charging its customers an additional sum for the charger, which is in violation of the FAME-II regulations. By exploiting this loophole in the subsidy scheme, they were able to meet the Rs 1.5 lakh ex-showroom threshold, and hence were able to avail the subsidy. They were hence made to refund the amount back to the customers.
But now that the companies have agreed to do so, the Indian government has decided to resume their subsidies. So technically speaking, this is the resuming of the subsidies and not really the government paying these companies this amount. Steps like these that keep pricing transparency will really go a long way in building trust with customers and retaining their faith in electric mobility.
India’s electric mobility industry is still in its nascent stage and subsidies have really helped bring more sustainability to this eco-friendly but expensive (to purchase) mode of commuting. That said, the battery technology should get cheaper over time and we hope brands won’t need to depend on subsidies for too much longer in order to keep the pricing in check.