Avon Cycles Ltd. of India has denied any misconduct in relation to a program that provides subsidies to automakers in an effort to increase the sales of electric vehicles. The corporation was one of several under investigation for misappropriation, according to the Indian authorities.
Under the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME) program, the Indian government is compensating electric car and hybrid vehicle manufacturers for lowering the purchase price of their vehicles. Avon Cycles said that none of their two-wheeler models are covered by the program. Following the examination, two of the 12 companies were barred from collecting incentives.
The 100 billion rupee ($1.21 billion) program’s rules were allegedly broken by 12 makers of electric vehicles and parts, including Avon Cycles, the minister for heavy industries Mahendra Nath Pandey said parliament on Tuesday.
By 2030, India plans to increase the percentage of electric vehicles sold from its current 1%, or roughly 3 million vehicles annually, to 30%.