Industry

₹700-cr. investment on hold, says Hero Electric

FAME II failed to deliver: MD Munjal

Electric two-wheeler maker Hero Electric has put on hold investment of up to ₹700 crore for a year with the sector taking a nosedive as FAME II, the scheme aimed at promoting electric vehicles (EVs), has failed to deliver, according to a top company official.

Calling for a complete revamp of policy, the firm wants the Centre to include low speed two-wheelers for subsidy, arguing that for mass adoption of EVs in India, these cost-effective vehicles were critical.

“From an industry standpoint, there was a certain trajectory which was going on when we had FAME I... the manner in which FAME II was introduced, the whole industry took a downturn and [is] now recovering from that,” said Hero Electric MD Naveen Munjal.

As per Society of Manufacturers of Electric Vehicles, sales of FAME II qualified electric two-wheelers fell 93.84% to 3,000 units in the April-December 2019 period as against 48,671 units a year earlier.

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Printable version | Feb 19, 2020 12:23:22 AM | https://www.thehindu.com/business/Industry/700-cr-investment-on-hold-says-hero-electric/article30453514.ece

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