Mumbai: Nearly every second electric two-wheeler sold under the Centre’s ambitious Rs 10,000 crore electric vehicle (EV) promotion scheme was sold with false localisation claims, an investigation has found, said people with knowledge of the matter. The scheme envisaged subsidising 1 million electric two-wheelers by April 2024.A probe conducted by the Automotive Research Association of India (ARAI) found multiple companies relying on imports for key parts such as electric motors, controllers and on-board chargers, said the people cited above. ET has seen a copy of this letter.The FAME-II scheme commenced in April 2019 for a period of three years. It was then extended by a further two years till 31 March 2024.Following the unearthing of irregularities under the FAME-II scheme, the MHI has changed its priority to promoting electric buses over two- and three-wheelers. Prices of electric two-wheelers will likely rise by Rs 25,000-40,000 from 1 June as the government slashes the subsidy.

Source: Economic Times May 30, 2023 13:19 UTC