Revenue from Greaves Cotton’s electric mobility business plunged 77.78% to Rs 612 crore in fiscal year 2024, down from Rs 1,124 crore a year earlier, according to an investor presentation. The decline was attributed to a shift in government subsidies under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) programme.
Removal of the subsidy led to an increase in Greaves Electric’s product prices, which in turn led to a drop in demand.
In FY22, the company’s e-mobility contributed Rs 522 crore. During FY21 and FY20, the revenues were Rs 176 crore and Rs 136 crore, respectively.
The government introduced the FAME-II scheme in 2019 with an outlay of Rs 10,000 crore. The scheme provided subsidies to two-wheeler companies to make electric vehicles in India in a bid to boost electric vehicle adoption and local manufacturing. The guidelines permitted incentives for manufacturing electric vehicles using components made in India. But a government investigation in 2022 found that seven companies, including Greaves, allegedly violated the local sourcing norms by using imported components to claim incentives.
In October last year, Greaves claimed to have refunded the Rs 124 crore subsidy it received under the scheme. Hero Electric, Okinawa Autotech, Benling India, Revolt Intellicorp, Amo Mobility, and Lohia Auto were the other companies which were asked to refund the subsidy.
Greaves Electric Mobility during the previous fiscal had launched the Greaves Eltra City, a passenger L3 vehicle, while broadening the 3W financing network with 16 PAN-India and 16 state-specific partners, fostering the commitment to accessible and convenient mobility solutions. The company recently announced the appointment of K. Vijaya Kumar as Executive Director and CEO of the Greaves Electric Mobility segment to lead its initiatives in product development, dealer distribution, and market expansion, among other areas.