FAME plays spoilsport with Hero Electric and Okinawa

anjan_c2007 · 9th November 2022, 21:50

Hero Electric and Okinawa, the two electric two wheeler makers have come under watch of the Union Heavy Industries Ministry. The Faster Adoption and Manufacturing of Electric and Hybrid vehicles (FAME) scheme aims at offering a subsidy of 25-30% of cost price to EV makers who comply with the manufacturing guidelines. The main guidelines under the FAME scheme comes with a caveat for manufacturers who have to locally source key components like motors and controllers to help create a local manufacturing and supply chain in India. It is meant to exclude Chinese imports as the government does not believe in subsidising such cheap imports with the taxpayers money.

The two, two wheeler makers have purportedly violated the FAME norms as the Heavy Industries Ministry puts it. Multiple companies have come under the scanner, but the subsidies for Hero Electric and Okinawa show "expired" status in the FAME website. Such an adverse entry in the FAME website is a setback for the two companies who would be facing tough times with their creditors and also with potential buyers. An unfavourable impact on their credit profile will harm their balance sheets.

The two companies spokespersons have however claimed that they are now compliant with FAME scheme rules and that they have completed all procedural formalities to get their subsidies resumed.

The newslink:-

https://m.economictimes.com/industry...w/95386313.cms

shancz · 12th November 2022, 10:03

Going by what I observed with Okinawa some of its models like the Dual could be traced directly to a CKD assembly kit available on some Chinese portals at 40% of its sale price here, could be lower since they buy in bulk. I had enquired about the workshop which didn't exist as they mentioned that all it needs is "tightening and adjusting cables and nuts".
I expect the same with Hero electric with the only difference being a false sense of trust in people's minds due to the Hero name.
There many other kit-assemblers too and its beyond high time the government cracked down upon them

I repeat myself but my biggest concern with this is what happens to these when their batteries or the motor goes kaput. The costs and availability of spares is a big question mark and I fear we'll be looking at a a massive quantity of dead units impacting the least financially stable section of our riders.

We should have moved in with regulations sooner but at least we should move faster now to catch up.

Gansan · 12th November 2022, 10:28

Many people think Hero Electric is part of Hero Motocorp and buy the scooters when in reality it has nothing to do with the latter. Though it belongs to another branch of the same family.

I feel Hero Motors should issue a public disclaimer to that effect.

Sankar · 12th November 2022, 15:28

Ather, Ola and TVS apart from these three names I don't think any other electric two wheeler can qualify as designed or made in India. Others? Only their names sound Japanese.

Gansan · 12th November 2022, 17:19

^^ What about Bajaj Chetak? I think that should make the cut too.

Sankar · 12th November 2022, 17:40

Of course how did I forget Chetak! The name skipped my mind only because they don't seem to be selling too many of them and is not in the news either. I have used a 2-stroke Chetak for some years as my primary ride, with a souped up engine and stock looks

Rajeev1 · 12th November 2022, 19:53

The other "scam" which has been going on in the EV 2W space for a while now pertains to "unregistered" 2 wheelers. As per Motor Vehicle rules - an EV doesnt need to be registered in any RTO if their motor is of less than 250W capacity and speed is lower than 25 kmph.

Many operators are hoodwinking the Government and selling chinese knockoffs and some locally assembles 2 wheelers without registration which are capable of greater speeds and have bigger motor capacities. Lack of RTO registration makes the 2W cheaper to the customer and possibly even insurance isnt needed.

The other day, one such bike overtook me when I was riding at 55kmph !

RTOs and Central Government better wake up..

Gansan · 12th November 2022, 22:14

^^ I too have observed them. They will have no number plates. Im will be doing 55-60 when I pass them, they will be doing at least 50 whereas they should not be able to cross 35.

anjan_c2007 · 17th November 2022, 21:14

Today's news puts Okoye, Ampere, Revolt and Jitendra EV also in the government EV subsidy blacklist of FAME effective since 01.04.22.

https://m.economictimes.com/industry...w/95566946.cms

anjan_c2007 · 6th January 2023, 20:14

The latest on this topic is that the government is now applying its lens on the FAME subsidies availed by EV manufacturers without meeting the localisation commitments.

Quote:

The Centre plans to initiate recovery of wrongly claimed subsidies by electric vehicle (EV) makers under a dedicated ₹10,000-crore programme that was created to promote local manufacturing and adoption of transport choices that don't leave tailpipe emissions.

The newslink:-

https://m.economictimes.com/industry...w/96773861.cms

volkman10 · 9th February 2023, 15:25

Four EV companies under lens for subsidy misuse.

Ola, Ather, TVS Motor and Vida are under the scanner for allegedly mispricing their electric two-wheelers to make them eligible for subsidy under the scheme Faster Adoption & Manufacturing of Electric Vehicles (FAME).

The EV makers may have falsely claimed at least ₹300 cr subsidy.

Other manufacturers are too being scrutinized for their alleged failure to meet localization commitments under the scheme.

Link

kosjam · 9th February 2023, 17:03

Isn't this a misleading title for the thread?

It should actually have been "Hero Electric and Okinawa Flout FAME Rules"

The title currently makes it seem like the FAME rules are draconian and are hurting poor manufacturers when in fact it is the other way around. The government is taking belated action against these flouting manufacturers which will get them to fall in line.

Mods, suggestions?

PreludeSH · 9th February 2023, 20:23

Quote:

Originally Posted by volkman10

Four EV companies under lens for subsidy misuse.

Ola, Ather, TVS Motor and Vida are under the scanner for allegedly mispricing their electric two-wheelers to make them eligible for subsidy under the scheme Faster Adoption & Manufacturing of Electric Vehicles (FAME).

The EV makers may have falsely claimed at least ₹300 cr subsidy.

Other manufacturers are too being scrutinized for their alleged failure to meet localization commitments under the scheme.

Link

When I bought mine only TPMS and saree guard was extra. EVerything else was included in original invoice.

9th November 2022, 21:50	#1
anjan_c2007 Distinguished - BHPian Join Date: Jul 2008 Location: India Posts: 8,340 Thanked: 20,695 Times View My Garage	FAME plays spoilsport with Hero Electric and Okinawa Hero Electric and Okinawa, the two electric two wheeler makers have come under watch of the Union Heavy Industries Ministry. The Faster Adoption and Manufacturing of Electric and Hybrid vehicles (FAME) scheme aims at offering a subsidy of 25-30% of cost price to EV makers who comply with the manufacturing guidelines. The main guidelines under the FAME scheme comes with a caveat for manufacturers who have to locally source key components like motors and controllers to help create a local manufacturing and supply chain in India. It is meant to exclude Chinese imports as the government does not believe in subsidising such cheap imports with the taxpayers money. The two, two wheeler makers have purportedly violated the FAME norms as the Heavy Industries Ministry puts it. Multiple companies have come under the scanner, but the subsidies for Hero Electric and Okinawa show "expired" status in the FAME website. Such an adverse entry in the FAME website is a setback for the two companies who would be facing tough times with their creditors and also with potential buyers. An unfavourable impact on their credit profile will harm their balance sheets. The two companies spokespersons have however claimed that they are now compliant with FAME scheme rules and that they have completed all procedural formalities to get their subsidies resumed. The newslink:- https://m.economictimes.com/industry...w/95386313.cms
	(8) Thanks

12th November 2022, 10:03	#2
shancz Senior - BHPian Join Date: Oct 2020 Location: Ranchi Posts: 1,943 Thanked: 5,322 Times	Re: FAME plays spoilsport with Hero Electric and Okinawa Going by what I observed with Okinawa some of its models like the Dual could be traced directly to a CKD assembly kit available on some Chinese portals at 40% of its sale price here, could be lower since they buy in bulk. I had enquired about the workshop which didn't exist as they mentioned that all it needs is "tightening and adjusting cables and nuts". I expect the same with Hero electric with the only difference being a false sense of trust in people's minds due to the Hero name. There many other kit-assemblers too and its beyond high time the government cracked down upon them I repeat myself but my biggest concern with this is what happens to these when their batteries or the motor goes kaput. The costs and availability of spares is a big question mark and I fear we'll be looking at a a massive quantity of dead units impacting the least financially stable section of our riders. We should have moved in with regulations sooner but at least we should move faster now to catch up. Last edited by Sheel : 12th November 2022 at 12:31. Reason: As requested.
	(9) Thanks

12th November 2022, 10:28	#3
Gansan Senior - BHPian Join Date: May 2009 Location: Chennai Posts: 4,539 Thanked: 5,564 Times	Re: FAME plays spoilsport with Hero Electric and Okinawa Many people think Hero Electric is part of Hero Motocorp and buy the scooters when in reality it has nothing to do with the latter. Though it belongs to another branch of the same family. I feel Hero Motors should issue a public disclaimer to that effect.
	(7) Thanks

12th November 2022, 15:28	#4
Sankar Senior - BHPian Join Date: May 2005 Location: Location Posts: 5,766 Thanked: 9,058 Times	Re: FAME plays spoilsport with Hero Electric and Okinawa Ather, Ola and TVS apart from these three names I don't think any other electric two wheeler can qualify as designed or made in India. Others? Only their names sound Japanese.
	(3) Thanks

12th November 2022, 17:19	#5
Gansan Senior - BHPian Join Date: May 2009 Location: Chennai Posts: 4,539 Thanked: 5,564 Times	Re: FAME plays spoilsport with Hero Electric and Okinawa ^^ What about Bajaj Chetak? I think that should make the cut too.
	(4) Thanks

12th November 2022, 17:40	#6
Sankar Senior - BHPian Join Date: May 2005 Location: Location Posts: 5,766 Thanked: 9,058 Times	Re: FAME plays spoilsport with Hero Electric and Okinawa Of course how did I forget Chetak! The name skipped my mind only because they don't seem to be selling too many of them and is not in the news either. I have used a 2-stroke Chetak for some years as my primary ride, with a souped up engine and stock looks
	(2) Thanks

12th November 2022, 19:53	#7
Rajeev1 BHPian Join Date: Oct 2012 Location: Bangalore Posts: 190 Thanked: 388 Times	Re: FAME plays spoilsport with Hero Electric and Okinawa The other "scam" which has been going on in the EV 2W space for a while now pertains to "unregistered" 2 wheelers. As per Motor Vehicle rules - an EV doesnt need to be registered in any RTO if their motor is of less than 250W capacity and speed is lower than 25 kmph. Many operators are hoodwinking the Government and selling chinese knockoffs and some locally assembles 2 wheelers without registration which are capable of greater speeds and have bigger motor capacities. Lack of RTO registration makes the 2W cheaper to the customer and possibly even insurance isnt needed. The other day, one such bike overtook me when I was riding at 55kmph ! RTOs and Central Government better wake up..
	(4) Thanks

12th November 2022, 22:14	#8
Gansan Senior - BHPian Join Date: May 2009 Location: Chennai Posts: 4,539 Thanked: 5,564 Times	Re: FAME plays spoilsport with Hero Electric and Okinawa ^^ I too have observed them. They will have no number plates. Im will be doing 55-60 when I pass them, they will be doing at least 50 whereas they should not be able to cross 35.
	(2) Thanks

17th November 2022, 21:14	#9
anjan_c2007 Distinguished - BHPian Join Date: Jul 2008 Location: India Posts: 8,340 Thanked: 20,695 Times View My Garage	Re: FAME plays spoilsport with Hero Electric and Okinawa Today's news puts Okoye, Ampere, Revolt and Jitendra EV also in the government EV subsidy blacklist of FAME effective since 01.04.22. https://m.economictimes.com/industry...w/95566946.cms
	(2) Thanks

9th February 2023, 15:25	#11
volkman10 Distinguished - BHPian Join Date: Dec 2010 Location: -- Posts: 23,439 Thanked: 67,886 Times View My Garage	Re: FAME plays spoilsport with Hero Electric and Okinawa Four EV companies under lens for subsidy misuse. Ola, Ather, TVS Motor and Vida are under the scanner for allegedly mispricing their electric two-wheelers to make them eligible for subsidy under the scheme Faster Adoption & Manufacturing of Electric Vehicles (FAME). The EV makers may have falsely claimed at least ₹300 cr subsidy. Other manufacturers are too being scrutinized for their alleged failure to meet localization commitments under the scheme. Link Last edited by volkman10 : 9th February 2023 at 15:27.
	(1) Thanks

9th February 2023, 17:03	#12
kosjam BHPian Join Date: Jul 2021 Location: Mumbai Posts: 316 Thanked: 1,609 Times	Re: FAME plays spoilsport with Hero Electric and Okinawa Isn't this a misleading title for the thread? It should actually have been "Hero Electric and Okinawa Flout FAME Rules" The title currently makes it seem like the FAME rules are draconian and are hurting poor manufacturers when in fact it is the other way around. The government is taking belated action against these flouting manufacturers which will get them to fall in line. Mods, suggestions?
	(1) Thanks