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In a major move aimed at qualifying for delayed government subsidies worth nearly ₹800 crore, India’s top electric two-wheeler manufacturers — Ola Electric, Ather Energy, TVS Motor, and
/indianstartupnews/media/media_files/dz8NH43BTTHYnz9IEzfQ.png?w=803&resize=803,490&ssl=1 "Here’s Why Top Indian EV Makers Will Refund EV Charger Costs to Customers")
In a major move aimed at qualifying for delayed government subsidies worth nearly ₹800 crore, India’s top electric two-wheeler manufacturers — Ola Electric, Ather Energy, TVS Motor, and Hero MotoCorp — have decided to refund customers who were previously billed separately for EV chargers.
This step comes after the Ministry of Heavy Industries (MHI) pulled up several electric vehicle manufacturers over compliance issues related to the FAME-II (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) subsidy scheme.
The controversy stems from how OEMs (Original Equipment Manufacturers) priced their electric scooters and accessories.
Under the FAME-II guidelines, to qualify for government incentives, the maximum ex-factory price of an electric two-wheeler must not exceed ₹1.5 lakh.
However, several manufacturers — including Ola Electric and Ather Energy — had reportedly sold scooters without the charger included in the base price, billing the charger separately to keep the scooter price under the ₹1.5 lakh limit.
This practice technically allowed them to qualify for the subsidy while still charging customers extra for the essential charging equipment.
After a thorough review, the Ministry directed EV makers to reimburse customers for any separately billed chargers to remain eligible for the incentives.
Ola Electric, the country’s largest EV scooter manufacturer, has taken the lead in complying with the government’s directive.
The company has confirmed it will refund approximately ₹130 crore to around one lakh customers who purchased the Ola S1 Pro scooters between FY 2019–20 and March 30, 2023.
In an official letter to the Automotive Research Association of India (ARAI), Ola stated that it will reimburse the cost of the off-board chargers sold as optional accessories.
This move ensures the company remains in full compliance with the FAME-II subsidy framework and secures access to government benefits withheld for months.
Following Ola’s decision, the ARAI announced that it would not pursue any further action against the company, acknowledging its proactive compliance and customer-first approach.
Ather Energy, another leading player in the EV scooter market, is also considering refunds for customers who were billed separately for chargers.
The company, known for its Ather 450 series, has been working closely with the ministry to ensure adherence to FAME-II norms.
Similarly, TVS Motor and Hero MotoCorp — both major EV players under the FAME-II scheme — are expected to process reimbursements soon to qualify for pending government incentives.
This collective compliance by industry leaders signals a renewed commitment to transparency and collaboration with the government.
Launched in 2019, the FAME-II scheme is the cornerstone of India’s push toward sustainable electric mobility. The program provides financial subsidies to manufacturers and consumers to promote the adoption of EVs and reduce carbon emissions.
To qualify for the subsidy:
While the scheme has accelerated EV adoption, administrative bottlenecks and compliance reviews have delayed the release of funds — putting pressure on manufacturers dependent on these incentives for pricing competitiveness.
The Ministry of Heavy Industries has maintained a firm stance on ensuring accountability and fairness in subsidy claims.
By requiring refunds for separately billed chargers, the Ministry aims to eliminate loopholes and ensure customers receive full value for their purchases without hidden costs.
A senior official from the Ministry stated that companies willing to comply with the refund directive would be eligible for pending incentive disbursements, clearing the path for nearly ₹800 crore in payments to the industry.
This step not only protects consumer interests but also ensures a level playing field for all manufacturers participating in the FAME-II program.
The subsidy delay had caused significant financial strain for EV companies, especially as raw material and battery costs surged in recent quarters.
By processing refunds and qualifying for the FAME-II reimbursements, companies like Ola, Ather, and TVS can strengthen their cash flow and reinvest in R&D, manufacturing, and after-sales service infrastructure.
Industry analysts view this as a win-win situation — customers are compensated, and manufacturers regain access to government support critical for scaling operations.
For customers, the refund is a welcome move that reinforces trust in the emerging EV market.
Buyers who paid separately for chargers — in some cases up to ₹10,000–₹15,000 — will now receive refunds directly from manufacturers.
This gesture not only aligns pricing practices with government norms but also boosts consumer confidence in India’s evolving electric vehicle landscape.
The EV industry has largely welcomed the Ministry’s directive, viewing it as an opportunity to restore momentum to India’s electric mobility mission.
Sohinder Gill, Director General of Society of Manufacturers of Electric Vehicles (SMEV), remarked:
“This resolution demonstrates that both the government and manufacturers are working together to make India a global EV leader. Transparency and consumer protection must remain top priorities.”
Market experts believe the compliance-driven refunds will fast-track the release of subsidies, offering a much-needed push to manufacturers struggling with rising input costs and delayed disbursements.
India’s EV transition is not just about vehicles — it’s about building an ecosystem of trust, innovation, and sustainability.
By aligning business practices with government policies, EV makers are helping to:
The refund decision also underscores the importance of policy clarity and collaboration between public and private sectors in driving India’s green mobility goals.
With refunds underway and compliance restored, the Ministry is expected to release pending FAME-II incentives in the coming weeks.
The next phase of focus will likely be on:
If executed efficiently, this collaboration between the government and OEMs could solidify India’s position as one of the fastest-growing EV markets in the world.
1. Why are Indian EV makers refunding charger costs?
Because the government found that chargers were billed separately to stay under subsidy pricing limits. Refunds are required to comply with FAME-II norms.
2. Which companies are issuing refunds?
Ola Electric, Ather Energy, TVS Motor, and Hero MotoCorp are among the key manufacturers processing refunds.
3. How much refund will customers receive?
Refund amounts vary by model but typically range from ₹10,000–₹15,000 per customer.
4. How much subsidy is involved overall?
Nearly ₹800 crore in government subsidies are expected to be released following compliance.
5. Will this affect future EV prices?
With the subsidies reinstated, manufacturers could maintain or reduce EV prices, making them more accessible to consumers.
The decision by top Indian EV makers to refund charger costs marks a maturing moment for India’s electric mobility industry.
It demonstrates accountability, regulatory compliance, and a shared commitment to the nation’s clean transport mission.
By working hand-in-hand with the government, manufacturers are ensuring the sustainability of both their businesses and India’s journey toward a cleaner, electrified future.
As the FAME-II incentive rollout resumes, India’s EV revolution is set to accelerate — powered by innovation, transparency, and trust.
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