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Business Standard
a day ago
- Automotive
- Business Standard
Electric two-wheeler firms in talks with govt for localisation relief
PLI, PMP targets under strain as rare earth magnet stocks fast dry up Surajeet Das Gupta New Delhi Listen to This Article Electric two-wheeler (e2W) firms have approached the Ministry of Heavy Industries (MHI), seeking exemptions from including electric motors in the localisation calculations under the production-linked incentive (PLI) scheme for automobile and auto components — and from the phased manufacturing programme (PMP) localisation requirement for subsidy eligibility under the PM Electric Drive Revolution in Innovative Vehicle Enhancement scheme. In a meeting with the MHI, 2W companies told the government that their stock of rare earth magnets is dwindling, leaving them with no option but to import electric motors — already fitted with rare earth magnets — directly from China. Earlier, many companies
Time of India
2 days ago
- Automotive
- Time of India
Smaller e-bike cos slip after FAME red flag
Electric two-wheeler makers penalised for violating Faster Adoption and Manufacturing of Electric Vehicles-II ( FAME-II ) subsidy norms have seen a collapse in sales, with several smaller players nearly vanishing from the market. The government's crackdown has consolidated market share among a few players. Gurugram-based Okinawa Autotech saw its annual sales nosedive from 31,618 units in 2023 to 4,855 in 2024. In the first half of 2025, it has managed to sell just 1,422 vehicles, according to data from the government's Vahan portal. Ampere Vehicles , owned by Greaves Electric Mobility, also recorded a drop in volumes. Combined sales reported on Vahan under both Ampere and Greaves fell to 26,963 units in 2025 so far, down from 36,148 units in 2024 and 66,958 in 2023. Other manufacturers such as AMO Mobility and Benling India have almost disappeared from the market, selling just 25 and 95 vehicles, respectively, in 2025. Launched in 2019, FAME-II aimed to promote domestic manufacturing by mandating that a fixed percentage of components be sourced locally to qualify for demand incentives. However, between late 2022 and early 2023, the government began investigating multiple companies after receiving complaints of non-compliance. 'The market has been a bit slow but is likely to improve… We are finding our own ways to sell our vehicles,' said Sushant Kumar, founder of AMO Mobility, without elaborating. Hero Electric , once a market leader, is now undergoing insolvency proceedings. The resolution professional has invited bids for the bankrupt company. Hero had 29,965 vehicle registrations in 2023, which plunged to 2,916 units in 2024 and 382 units so far in 2025. 'This is a case of regulatory action that essentially took the wind out of these companies,' said V G Ramakrishnan, managing partner at Avanteum Advisors LLP. 'They benefited from the subsidies without following the rules and ultimately paid the price. They had a business model but failed to invest in localisation or comply with government directives, yet continued to claim incentives.' The decline in registrations follows the Ministry of Heavy Industries' decision to suspend subsidy disbursals after several electric two-wheeler makers were found violating Phased Manufacturing Programme (PMP) localisation norms under FAME-II. A total of 13 companies came under scrutiny. Six including Hero Electric, Okinawa Autotech, Benling India, AMO Mobility, Greaves Electric Mobility and Revolt Motors were found to have violated the norms. Following detailed audits and vendor invoice checks, these companies were directed to return subsidies, with the total clawback estimated at ₹469 crore. Among these, Revolt, Greaves, and AMO Mobility returned a combined ₹170 crore to the government. Hero Electric, Okinawa Autotech, and Benling India contested the claims and approached the courts. 'The temporary dip in numbers during 2024 was primarily due to a voluntary business pause we undertook while seeking regulatory clarity around the FAME-II subsidy criteria. Like several players in the industry, we faced challenges, which significantly impacted operations across the sector,' said a spokesperson for Greaves Electric Mobility. 'However, following the resolution and payment of dues, we have resumed normal business operations and are witnessing a steady recovery in registrations and market momentum.' Benling India declined to comment on the matter, while Hero Electric's Naveen Munjal, Okinawa, and Revolt Motors and did not respond to queries. In December 2024, the Serious Fraud Investigation Office (SFIO) launched inquiries into Hero Electric, Benling India and Okinawa Autotech for allegedly falsifying documents to show compliance. Raids and document seizures were carried out as part of the probe into the fraudulent availing of subsidies worth ₹297 crore. The loss of subsidies led to sharp price increases across models, denting consumer demand and leading to a collapse in sales at these firms. 'Some companies deliberately ignored the policy, which had commercial consequences,' Ramakrishnan said. 'When the government enforced localisation norms strictly, these firms lost out. But this did not mean the entire market collapsed. In fact, new players entered, and existing compliant players expanded.' While smaller, non-compliant players crumbled, the market share of large, compliant players such as TVS Motor, Bajaj Auto, Ola Electric, and Ather Energy has grown. TVS and Bajaj, leveraging strong supply chains and brand credibility, are now leading the electric two-wheeler segment. Ola Electric, though facing increased regulatory scrutiny and a decline in market share, continues to scale production and remains among the top players. Ather Energy has also benefited from the shake-up, with a steady rise in registrations and continued investments in new models and charging infrastructure. The government, meanwhile, is working on a successor programme, referred to as FAME-III , aimed at promoting electric mobility while ensuring stricter compliance and a stronger focus on domestic manufacturing. The new policy is expected to further support the transition to cleaner mobility and reduce the country's dependence on fossil fuels.
Time of India
2 days ago
- Automotive
- Time of India
Smaller EV players nearly wiped out as FAME-II crackdown triggers sales collapse
Academy Empower your mind, elevate your skills ETtech Electric two-wheeler makers penalised for violating Faster Adoption and Manufacturing of Electric Vehicles-II ( FAME-II ) subsidy norms have seen a collapse in sales, with several smaller players nearly vanishing from the market. The government's crackdown has consolidated market share among a few Okinawa Autotech saw its annual sales nosedive from 31,618 units in 2023 to 4,855 in 2024. In the first half of 2025, it has managed to sell just 1,422 vehicles, according to data from the government's Vahan portal. Ampere Vehicles , owned by Greaves Electric Mobility , also recorded a drop in volumes. Combined sales reported on Vahan under both Ampere and Greaves fell to 26,963 units in 2025 so far, down from 36,148 units in 2024 and 66,958 in manufacturers such as AMO Mobility and Benling India have almost disappeared from the market, selling just 25 and 95 vehicles, respectively, in 2025. Launched in 2019, FAME-II aimed to promote domestic manufacturing by mandating that a fixed percentage of components be sourced locally to qualify for demand incentives. However, between late 2022 and early 2023, the government began investigating multiple companies after receiving complaints of non-compliance.'The market has been a bit slow but is likely to improve… We are finding our own ways to sell our vehicles,' said Sushant Kumar, founder of AMO Mobility, without elaborating. Hero Electric , once a market leader, is now undergoing insolvency proceedings . The resolution professional has invited bids for the bankrupt company. Hero had 29,965 vehicle registrations in 2023, which plunged to 2,916 units in 2024 and 382 units so far in 2025.'This is a case of regulatory action that essentially took the wind out of these companies,' said VG Ramakrishnan, managing partner at Avanteum Advisors LLP. 'They benefited from the subsidies without following the rules and ultimately paid the price. They had a business model but failed to invest in localisation or comply with government directives, yet continued to claim incentives.'The decline in registrations follows the Ministry of Heavy Industries' decision to suspend subsidy disbursals after several electric two-wheeler makers were found violating Phased Manufacturing Programme (PMP) localisation norms under FAME-II.A total of 13 companies came under scrutiny. Six, including Hero Electric, Okinawa Autotech, Benling India, AMO Mobility, Greaves Electric Mobility and Revolt Motors, were found to have violated the norms. Following detailed audits and vendor invoice checks, these companies were directed to return subsidies , with the total clawback estimated at Rs 469 these, Revolt, Greaves, and AMO Mobility returned a combined Rs 170 crore to the government. Hero Electric, Okinawa Autotech, and Benling India contested the claims and approached the courts.'The temporary dip in numbers during 2024 was primarily due to a voluntary business pause we undertook while seeking regulatory clarity around the FAME-II subsidy criteria. Like several players in the industry, we faced challenges, which significantly impacted operations across the sector,' said a spokesperson for Greaves Electric Mobility. 'However, following the resolution and payment of dues, we have resumed normal business operations and are witnessing a steady recovery in registrations and market momentum.'Benling India declined to comment on the matter, while Hero Electric's Naveen Munjal, Okinawa, and Revolt Motors and did not respond to December 2024, the Serious Fraud Investigation Office (SFIO) launched inquiries into Hero Electric, Benling India and Okinawa Autotech for allegedly falsifying documents to show compliance. Raids and document seizures were carried out as part of the probe into the fraudulent availing of subsidies worth Rs 297 loss of subsidies led to sharp price increases across models, denting consumer demand and leading to a collapse in sales at these firms.'Some companies deliberately ignored the policy, which had commercial consequences,' Ramakrishnan said. 'When the government enforced localisation norms strictly, these firms lost out. But this did not mean the entire market collapsed. In fact, new players entered, and existing compliant players expanded.'While smaller, non-compliant players crumbled, the market share of large, compliant players such as TVS Motor Bajaj Auto , Ola Electric, and Ather Energy has grown. TVS and Bajaj, leveraging strong supply chains and brand credibility, are now leading the electric two-wheeler Electric, though facing increased regulatory scrutiny and a decline in market share, continues to scale production and remains among the top players. Ather Energy has also benefited from the shake-up, with a steady rise in registrations and continued investments in new models and charging government, meanwhile, is working on a successor programme, referred to as FAME-III, aimed at promoting electric mobility while ensuring stricter compliance and a stronger focus on domestic manufacturing. The new policy is expected to further support the transition to cleaner mobility and reduce the country's dependence on fossil fuels.
Mint
07-07-2025
- Automotive
- Mint
Chinese motors instead of Chinese magnets? Yes, but there's a problem
Automakers looking to import fully made motors to skirt China's export ban on rare earth magnets have called for lower import duties and easier local content requirements. Passing on the duty burden on imported motors will raise vehicle prices, and manufacturers will miss out on production incentives with strict local content rules, the Society of Indian Automobile Manufacturers (Siam) wrote to the government. Production could come to a complete halt for several models if the motors aren't available. 'In the current scenario when there is a restriction on import of standalone magnets, full assembly/allied components/sub-assemblies will have to be imported which shall attract a basic customs duty (BCD) of 15% leading to increase in cost of the vehicles," the lobby of automakers wrote to the heavy industries ministry on 27 June. Mint has seen a copy of the letter. Electric vehicles are powered by traction motors connected to a battery, while sensors, telemetry and other electronic functions of all vehicles use rare earth magnets. India's automakers have so far failed to meet Chinese officials to quicken the approval process, highlighting the external dependence for these critical items, as well as the vulnerability of global supply chains. Local woes Siam also requested easier localization norms in production-linked incentive schemes and PM E-Drive, which will allow them to use imported material in vehicles without being disqualified for incentives. 'Applicants under both the PM-E Drive Scheme and Auto PLI Scheme should be granted temporary exemption/relaxation from the compliance requirements under PMP (phased manufacturing programme) timelines and DVA (domestic value addition) thresholds, specifically for components/aggregates affected by the REM supply crisis," the industry body wrote, urging the heavy industries ministry to request the finance ministry for a maximum of 7.5% BCD on motors. Siam counts nearly all major automakers such as Maruti Suzuki India Ltd, Hyundai Motor India Ltd, Tata Motors Ltd, Bajaj Auto Ltd, Mahindra and Mahindra Ltd, and TVS Motor Co. as its members. Queries emailed to the industry body remained unanswered. "If China relaxes its restrictions, then we will return to normal; but if it doesn't, there are no quick solutions," S.B. Mohanty, acting chairman and managing director of IREL Ltd, the state-owned rare earths company, told Mint in a recent interview. Subsidy scheme New Delhi will decide on a scheme to subsidize domestic production of rare earth magnets, heavy industries minister H.D. Kumaraswamy said on 24 June, adding stakeholder consultations are underway. Experts fear that any increase in cost in the current situation may be passed on to consumers as margins in the automobile industry are thin. As per Harshvardhan Sharma, group head for auto tech and innovation at Nomura Research Institute Consulting & Solutions India, the difference in duties, combined with logistics and markup by motor makers, can increase the landed cost of motors by 18-25%. 'Any increase in motor prices — due to full motor imports — cascades directly into final vehicle pricing unless offset by subsidies or economies of scale," Sharma notes. The most critical component using the rare earth magnet is the traction motors, the heart of an electric vehicle. In multiple consultations with the government over the last few months, manufacturers have conveyed that production lines will be threatened if the situation is not resolved soon. Bajaj Auto leadership warned during its post results earnings call on 29 May that production output will come under threat starting from July. Chinese grip Srihari Mulgund, partner at EY Parthenon, a consultancy, said that relying on imports for motors will give China a control on the market dynamics. 'China has capacity to meet India's demand and for its low-voltage motors used in two-wheelers and three-wheelers, India can emerge as a key player. As this industry already works on wafer thin margins, any cost increase is likely to be passed through, which will have a bearing on the demand environment," he said. In 2025, Maruti Suzuki, Mahindra, Tata Motors and Hyundai have already raised prices by 1-4%. At a time when country's carmakers are reporting a weak market, experts fear the impact any price hike can have particularly when the festive season is set to start from the next month. 'Along with the cost increase, automakers will have to deal with compliance cost increase as well due to the fact new motors will have to be homologated with the authorities," Mulgund added. Slow crawl According to industry estimates, India's car market will see a 1-2% growth in FY26. In 2025, the market grew by 2% to 4.3 million units. As per two people in the know, Chinese vendors told companies looking to import rare earth magnets to buy the motors directly instead of buying the raw material required to make them locally. 'If motors begin to be imported from China, it will put our localization efforts under threat and make firms more dependent on China," one of the persons mentioned above said. Increasing dependence on China, especially in the manufacturing of clean fuel vehicles, will also pose a hurdle to the Make in India initiative. Nomura Research Institute's estimates suggest that in electric two-wheelers, the traction motor forms 13-18% of bill of materials cost. In passenger EVs, the motor contributes 8-10%, with batteries making up 35-40%. With Chinese manufacturers looking to target higher-value components, experts warn that the latest crisis has given its companies an opportunity.
Business Wire
26-06-2025
- Business
- Business Wire
Princeton Medspa Partners Names Matt Slaine as Chief Executive Officer
PRINCETON, N.J.--(BUSINESS WIRE)-- Princeton Medspa Partners (PMP), a leading national platform dedicated to medspa and aesthetic medicine, proudly announces the appointment of Matt Slaine as its Chief Executive Officer. With 20 years of leadership experience in multi-unit organizations, M&A, private equity, and culture-driven growth environments, Slaine brings a wealth of expertise in scaling successful businesses. He holds an MBA from NYU Stern and a BA from Dartmouth College, and has served in executive and board roles across the health, wellness, and service industries. Most recently, Slaine was CEO of OT Growth Partners, one of the largest private equity-backed multi-unit franchise platforms under the Orangetheory Fitness brand. During his tenure, he led multiple strategic acquisitions and helped position the company as a recognized leader—earning a two-time ranking on North Carolina's Mid-Market Fast 40 list. Previously, he led Quality Restaurant Group, with 350 units, to the #1 spot on the Triad Business Journal 's list of Fastest Growing Companies. Slaine's leadership philosophy centers on fostering employee-centric cultures and driving performance through clear metrics and core values. His focus on accountability and cultural excellence aligns with PMP's ambitious growth objectives. 'I am honored to lead Princeton Medspa Partners during this dynamic period,' said Slaine. 'I'm passionate about expanding access to world-class medspa experiences nationwide. Our daily work and mission empower both our clients and employees to be the best versions of themselves.' 'We are excited to partner with Matt in this entrepreneurial endeavor. Under his guidance, PMP will accelerate acquisitions of provider-led medspas and continue our pursuit of operational excellence—building the premier medspa platform in the country,' said Jim Waskovich, Chairman of PMP. This leadership appointment coincides with PMP's bold growth strategy, backed by a recent $120 million funding round dedicated to multi-state expansion and scaling the highest-quality medspa brands across the nation.
