Entire E2W supply chain under stress as govt stance on subsidy hardens

Uncertainty over direction of govt policies is slowing investments and purchases; vehicle and ancillary makers need 5-year policy perspective to take investment calls, say industry experts

The government’s latest move to further tilt the electric vehicle (EV) subsidy apple cart from  June 1--midway through the FAME-II EV subsidy scheme--slashing the subsidy by 50 per cent will hurt the interests of both producers and investors and confuse the end-consumer, industry officials said.

Vijayan Sundaresan, an entrepreneur, is one such confused customer. A distributor of snacks who has to navigate the narrow streets of Chennai every day to stock the shelves of mom-and-pop shops with corn puffs, Vijayan plans to replace his ageing Splendour with a 2WEV. Last month, his neighbour secured a Rs 40,000 discount on a