The government had reduced the subsidy provided under the FAME-II scheme applicable on electric two-wheelers registered on or after June 1, 2023.
SMEV had even accused the ministry of "sabotaging" the Faster Adoption and Manufacturing of Electric Vehicles (FAME) II scheme while asking Niti Aayog for a comprehensive review of the policy.
It had also appealed to a parliamentary panel to direct the government to release what it called as "pending subsidy" of Rs 1,200 crore to various manufacturers withheld by the ministry on charges of non-compliance of local sourcing norms under the FAME II scheme.
SMEV Director General Sohinder Gill said the association has been proactive on issues concerning EV adoption and has partnered with the government's efforts since inception and even before the FAME policy was initiated. It has tried to work with departments concerned to vigorously highlight the difficulties, possibilities, challenges and opportunities from time to time.
"However, the EV sector is under extreme stress in the current times," Gill said adding, SMEV has been pushing for the resolution of all issues and is willing to work with all stakeholders to seek a way out.