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Electric vehicle (EV) makers Ather Energy, Hero MotoCorp (Vida) and TVS Motor Company have agreed to reimburse 100 per cent of the cost of the off-board or portable charger to all consumers who purchased them along with the products, totalling around ₹288 crore.
According to sources in the Ministry of Heavy Industries (MHI), Ather has agreed to reimburse ₹140 crore to its 95,000 customers; TVS Motor ₹15.61 crore to 87,000 customers; and Hero MotoCorp ₹2.23 crore to 1,100 of its Vida consumers.
Ola Electric had already agreed to reimburse ₹130 crore to one lakh consumers who purchased Ola S1Pro model up to March 30, 2023, sources told businessline.
Extra costs
The Ministry had received complaints regarding the misappropriation of subsidies by some EV makers under the FAME India scheme phase II, in which the manufacturers were allegedly overcharging consumers by selling portable chargers separately, said sources.
The cost of chargers were supposed to be included in the price of the EV. The Ministry, acting on these complaints, had directed testing agencies to investigate the matter.
Ather 450X electric scooter | Photo Credit: BIJOY GHOSH
“The testing agencies — Automotive Research Association of India (ARAI) and International Centre for Automotive Technology (ICAT) — have submitted their reports in respect of Ather, TVS and Ola Electric that the companies have announced... they will reimburse 100 per cent of the cost... to all consumers who purchased the off-board charger as an accessory while purchasing an e-two wheeler from the company’s authorised dealerships,” an MHI official told businessline.
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Further, Hero Motocorp has also written to ARAI stating it’s willingness to refund the cost of off-board/ portable chargers to its customers.
Who gets refund?
On the timelines, the official said, consumers who purchased the Ather 450X model up to April 12, 2023, will be reimbursed. “Along with this, the MHI will recover ₹25 crore from Ather for the reduced battery capacity on account of not buying the upgraded software,” the official said.
TVS iQube Electric | Photo Credit: SOMASHEKARA GRN
Similarly, TVS will reimburse those consumers who purchased TVS iQube S model between May 2022 and March 2023.
“...as a responsible corporate, TVS Motor has fully complied with all government regulations specified under FAME. Further towards alleviating ambiguity and ensuring a clear policy direction, TVS Motor will offer a goodwill benefit scheme for its customers who have paid over and above the threshold limit fixed by FAME. The overall cost impact to TVS Motor Company is less than ₹20 crore,” KN Radhakrishnan, Director and CEO, TVS Motor, said.
Hero MotoCorp will reimburse those consumers who purchased Vida V1 Plus and Vida V1 Pro models until March 2023.
‘Teething troubles’
The Ministry’s decision to take a practical view of the limitations and difficulties of OEMs is a good step and will bring a much-needed relief to the sector, said Sohinder Gill, Director General of the Society of Manufacturers of Electric Vehicles (SMEV).
“There are various ways to look at the issues relating to the subsidy and pricing, but at a basic level, they are simple teething troubles of a nascent industry,” he added.
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