Five EV makers received 468 crore rupees in subsidies despite breaking India localisation rules, CAG finds
By Eve
A Comptroller and Auditor General report tabled in Parliament found five original equipment manufacturers received 467.96 crore rupees in demand incentives under India's FAME scheme despite violating localisation norms under the Phased Manufacturing Programme. Three OEMs may have circumvented the 1.5 lakh rupee price cap for e-2-wheelers by selling onboard chargers separately, receiving 1,418.62 crore rupees in incentives for those models. The audit also uncovered portal inconsistencies that prevented verification of FAME-I subsidy payments, with conflicting figures showing claims ranging from 201.84 crore rupees to negative 423.28 crore rupees.
Why it matters
The findings expose weak compliance checks in India's flagship EV subsidy programme, raising questions about due diligence for public procurement and OEM eligibility. For charging operators, the report notes only 148 of 2,877 approved FAME-II charging stations have been delivered, signalling persistent infrastructure rollout delays.
Source
- Original title
- “5 EV makers pocketed ₹468 crore subsidy despite breaking localisation rules: CAG report”
- Published
- 13 August 2026
- Updated
- 14 August 2026
In this story
- Topic
- Policy & Market
- Place
- India
- Tag
- CAG
Related news
EU to cap Chinese hybrid imports at 350,000 vehicles per year from December
The European Commission has confirmed a quota limiting Chinese hybrid electric vehicle imports to 350,000 units annually, down from an expected 800,000 battery and plug-in hybrids this year. The measure, agreed in Beijing last week and enforceable from December under WTO safeguard rules, aims to halve China's EU market share from 6% to 3% over a four year period. Volkswagen's leadership has backed the plan to support domestic manufacturing.
Why it matters
The quota will reshape EV supply chains and may accelerate local manufacturing investment by Chinese OEMs seeking to maintain EU sales, directly affecting charging infrastructure planning as fleet composition shifts. CPOs and site hosts should anticipate changes in vehicle mix and charging demand patterns as the policy takes effect.
Australian energy regulator backs network-funded kerbside EV charger rollout
The Australian Energy Market Commission has granted preliminary approval for a plan to install 14,000 kerbside EV chargers on power poles in underserved areas, funded through household electricity bills. Network operators have pushed the proposal for years, arguing it will address charging black spots in major cities where private deployment is not commercially viable.
Why it matters
The decision creates a regulated utility-led procurement pathway for thousands of charge points in Australia, potentially opening new installation and equipment supply opportunities in areas private CPOs have avoided. The funding model through consumer bills removes commercial risk for network operators entering the charging market.
UK cuts home charging VAT to 0% but leaves public charging at 20%, widening driveway divide
From 1 October, domestic electricity VAT in the UK dropped to 0%, cutting home EV charging costs by an estimated £40 per year for drivers with off street parking. Public charging remains subject to 20% VAT, prompting char.gy CEO John Lewis to call the disparity unfair and urge Labour to reduce public charging costs. The policy change, linked to Andy Burnham's initiatives, has been criticised for widening the so called driveway divide between EV owners with and without private parking.
Why it matters
The VAT gap between home and public charging may slow uptake among drivers reliant on public infrastructure, pressuring charge point operators to absorb cost differences or risk losing customers. Policymakers and CPOs face renewed calls to level the playing field, which could influence future subsidy design and site economics for on street and destination charging.