After crackdown by department of heavy industries, EV two-wheeler sales plunge by nearly a fourth

Electric two-wheeler sales in the month of April has fell by nearly a fourth to 62,581 from 82,292, as per data from VAHAN. This has come after the department of heavy industries took punitive action against Hero Electric and Okinawa, based on a whistleblower complaint. The department is conducting audit investigation on the two companies, after allegations of breaking the localisation requirement of 50% on their scooters surfaced. Without this localisation requirement, subsidies can't be claimed.

After this, the two companies' registration plunged by 43% in April over March. The companies together hold 10% of the market share whereas the total share in 2022 was 31%.

As per Business Standard, electric two-wheeler companies, including Okinawa, Hero Electric, Ather Energy, and TVS, have all clocked their lowest registrations in the four months of this calendar year. However, Ola electric has recorded 21,560 registrations in April which is the highest in the year so far.

The department of heavy industries has with-held as much as Rs 1,200 crore of subsidies. A huge amount belongs to Hero Electric and Okinawa. Action against Ather, Ola, TVS, and Hero Motocorp has also been taken for allegedly violating subsidy norms by charging customers separately for an accessory for the charger, rather than incorporating it within the ex-factory price. As per Business Standard, there is a cap of Rs 1.5 lakh on the ex-factory price on electric two-wheelers for availing the FAME 2 subsidy.

Ather's sales have fallen by 37% registering 7,675 in April while TVS's registration has fallen by nearly 50% to 8,718 in April.