The Competition Commission of India (CCI) has rejected a plea alleging abuse of dominance by electric two-wheeler manufacturers, including Ola Electric, Hero Motocorp’s Vida, TVS Motors, and Ather. The anonymous complainant accused the companies of under-pricing their vehicles to exploit subsidies under the Faster Adoption & Manufacturing of Electric Vehicles -II scheme. The CCI found no prima facie evidence of market dominance and dismissed the allegations against the OEMs.
The complainant asserted that the manufacturers priced their offerings below INR 150,000, the maximum allowed for subsidy eligibility, while charging customers extra for essential components like chargers and software. This, according to the complainant, constituted an abuse of dominant position under Section 4 of the Competition Act.
Market share data revealed that Ola, TVS Motors, Ather, and Vida held shares of 17.57%, 7.51%, 8.32%, and 15.75%, respectively, in CY 2022. However, the CCI noted the absence of stable market shares among players and emphasized the industry’s rapid growth, anticipating increased competition.
The CCI order stated, “none of the accused (EV makers) appear to have a dominant position in the relevant market.” It further cited the absence of a single player exerting market power independently of market forces. As a result, the CCI closed the case, rejecting the request for relief under Section 33 of the Act.
The ruling comes almost a year after the initial complaint in February 2023, and representatives from the accused companies had reportedly met with government officials to address whistleblower allegations around mispricing under FAME-II norms in March of the same year.
Despite controversies and fines related to FAME-II, India witnessed a 50% growth in electric vehicle (EV) adoption in 2023, with EV registrations reaching 15.13 lakh units, according to Vahan data. Two-wheelers dominated the EV segment, registering a 34% YoY growth to 8.49 lakh units in 2023.
