Indian EV maker denies incentive misappropriation claims

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NEW DELHI, Dec 23 (Reuters) – India’s Avon Cycles Ltd has denied any wrongdoing in a scheme providing subsidies to automakers to boost the sale of electric vehicles (EVs), after the government said that the company was among those being investigated for embezzlement.

The Indian government is reimbursing manufacturers of electric vehicles and hybrid vehicles for reducing the purchase price of their vehicles under the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME) scheme.

Complaints have been filed against 12 makers of electric vehicles and parts, including Avon Cycles, for breaching the guidelines of the 100 billion rupiah ($1.21 billion) scheme, the industries minister told parliament on Tuesday. heavy, Mahendra Nath Pandey.

The other companies named by Pandey did not respond to Reuters’ request for comment.

Pandey said two of the 12 companies were suspended from claiming incentives as a result of the investigation.

Avon Cycles said in an email Thursday that it has no two-wheeled models covered by the program and that its three-wheeled models eligible for the program “fully meet the eligibility criteria.”

“At the moment we only have a presence in the low-speed two-wheeler category, which implies that we have no two-wheeler models covered by the FAME phase 2 program and, therefore , no subsidy was claimed in the two-wheeler segment by ‘Avon Cycles Limited.'” the company said in a statement.

“We have two number three three-wheeler models that qualify under the FAME Phase 2 program that fully meet the eligibility criteria set by the relevant authorities. In addition, the sales volumes of these three-wheeler models sold in part of the program shown, so far, have been insignificant.”

India aims to grow its electric car market from 1% of total car sales, or around 3 million per year, to 30% by 2030.

($1 = 82.8300 Indian rupees)

Reporting by Sakshi Dayal; Editing by Sudipto Ganguly and Jacqueline Wong

Our standards: The Thomson Reuters Trust Principles.

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