CCI Dismisses Complaint Against Electric Two-Wheeler Makers Over FAME Subsidy, Cites Competitive Market Dynamics

25 Jan 2024 , 03:40 PM

The Competition Commission of India (CCI) dismissed a plea against electric two-wheeler manufacturers Ola Electric, Hero MotoCorp, TVS Motors, and Ather.

The complaint alleged abuse of the FAME (Faster Adoption and Manufacturing of Electric & Hybrid Vehicles) subsidy, disadvantaging smaller manufacturers.

FAME policy, initiated in 2015, aims to promote electric and hybrid vehicles in India, providing incentives to manufacturers and buyers.

The subsidy is subject to criteria, including a Rs 1.5 lakh limit on the ex-factory price for two-wheelers. The CCI’s order highlighted market shares but concluded no stable market dominance, indicating a competitive market.

The evolving electric vehicle market sees new players entering, intensifying competition. Lack of a dominant player led to the CCI’s conclusion that there’s no abuse of a dominant position.

The dismissal suggests a competitive landscape in the evolving electric two-wheeler sector.

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