TVS Motor to refund Rs 20 crore to customers as goodwill benefit scheme

TVS Motor Company on Wednesday said it will refund around Rs 20 crore as a goodwill benefit scheme to customers who have paid over and above the threshold limit fixed under the FAME scheme.

The company however maintained that it has fully complied with all government regulations specified under the FAME (Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India) initiative.

In a statement, TVS Motor Company Director and CEO K N Radhakrishnan said the company is fully committed to the government's vision to promote electric mobility.

The company also fully supports the government's initiative to enable faster adoption of electric mobility, development of electric vehicle eco-system, he added.

"In the spirit of Atmanirbhar Bharat all the electric development has happened in house," Radhakrishnan said.

Additionally, 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 company said.

The overall cost impact to the company is less than Rs 20 crore, it added.

Society of Manufacturers Of Electric Vehicles (SMEV) also welcomed the move by the government to start settling pending issues of OEMs and bring the sector back to its feet.

"The beginning of resolution of disputed issues for OEMs augurs well for the sector," said Sohinder Gill, Director General, SMEV.

"It is time that the sector is allowed to stand on its feet again and efforts to revive the e-mobility sector can begin," he added.

As per various reports, Ola Electric has agreed to reimburse buyers around Rs 130 crore for the cost of chargers sold separately with scooters.

Last week, the government sent notices to Okinawa Autotech and Hero Electric for debarment from the FAME-II Scheme and sought the recovery of incentives claimed since FY20 after the two companies were found to be violating localisation norms under the scheme.

Based on anonymous emails, the government has recently re-opened audits for 2020 and 2021 where all companies were importing certain components which weren't manufactured in India.

The FAME II scheme commenced on April 1, 2019, for a period of three years, which was further extended for a period of two years up to March 31, 2024. The total outlay for FAME Scheme Phase II is Rs 10,000 crore. The scheme is exclusively for public and commercial transport in the segments of electric three-wheelers (e-3W), electric four-wheelers (e-4W), and electric buses.