According to an investor presentation, Greaves Cotton’s electric mobility company had a 77.78% decline in revenue to Rs 612 crore in the fiscal year 2024, from Rs 1,124 crore the previous year. A change in government incentives under the Faster Adoption and Manufacturing of Electric Vehicles (FAME) initiative was blamed for the decrease.
Greaves Electric’s product prices increased when the subsidy was removed, which in turn caused a decline in demand.
The company’s e-mobility segment brought in Rs 522 crore in FY22. The revenues for FY21 and FY20 were Rs 136 crore and Rs 176 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. However, 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 that 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.
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