Electric two-wheeler companies, including Okinawa, Hero Electric, Ather Energy, and TVS, have all clocked their lowest registrations in the four months of this calendar year. Ola Electric has been the only exception to this bloodbath, and has crossed its March numbers, hitting 21,560 registrations in April, which is its highest in this calendar year.
The big hit taken by most electric two-wheeler companies has been due to the punitive action by the department of heavy industries (DHI) on Hero Electric and Okinawa, based on a whistleblower complaint. The two companies have been under audit investigation for breaking the localisation requirement of 50 per cent on their scooters, without which they cannot claim subsidies.
According to industry estimates, as much as Rs 1,200 crore of subsidies are stuck over this issue, the bulk of which pertains to these two players. If the DHI action is not challenged, it could seriously dent their bottom lines and working capital as they have already paid the subsidy to the customers in anticipation of disbursements.
Gill said the market leaders manufacturing big volumes in 2019-21 had been the worst affected because of the non-existing supply chain, which was further hit by Covid for two consecutive years in 2020 and 2021. But late entrants, such as Ola, Bajaj, TVS, Kinetic, and Okaya, benefitted thanks to the supply chain that was beginning to take off in small numbers, he said.
Stay connected with us on social media platform for instant update click here to join our Twitter, & Facebook
We are now on Telegram. Click here to join our channel (@TechiUpdate) and stay updated with the latest Technology headlines.
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.