India’s Avon Cycles Ltd has denied any allegation in a scheme providing subsidies to automakers to boost sales of electric vehicles (EV) after the government said the company was among companies under investigation for embezzlement.
The Government of India is reimbursing manufacturers of electric vehicles and hybrid vehicles for lowering the purchase price of their vehicles under the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME) program.
Complaints were filed against 12 electric vehicle and component manufacturers, including Avon Cycles, for violating guidelines under the 100 billion rupees ($1.21 billion) program, Heavy Industry Minister Mahendra Nath Pandey told parliament on Tuesday.
The other companies named by Pandey did not respond to Reuters’ request for comment.
Pandey said two of the 12 companies have been suspended for claiming incentives following the investigation.
Avon Cycles said in an email on Thursday that it does not have a single two-wheeler model covered by the scheme, and that the three-wheeler models eligible for the program “fully meet the eligibility criteria.”
“Currently we are only present in the low speed category of two wheelers which means we do not have a two wheeler model that falls under FAME – Phase 2 scheme and therefore no subsidies have been claimed in the two wheeler segment by ‘Avon Cycles Limited'” the company said. in a statement.
“We have two number three-wheeler models eligible for FAME – phase 2 scheme that fully meet the criteria set by the concerned authorities. Also, the sales volumes of these three-wheeler models sold under the listed scheme are insignificant to date .”
India aims to grow its electric car market from 1% of total car sales, of about 3 million per year, to 30% by 2030.
($1 = 82,8300 Indian Rupees)
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