Electric two-wheeler manufacturers in India are facing a sales downturn as a result of breaching the Faster Adoption and Manufacturing of Electric Vehicles-II (FAME-II) subsidy norms. Companies like Okinawa Autotech and Ampere Vehicles have reported a sharp decline in sales figures. The government's scrutiny has revealed that multiple players failed to comply with the regulations, resulting in penalties and a market reshuffle. Despite challenges, compliant players like TVS Motor and Bajaj Auto have managed to strengthen their positions in the electric two-wheeler segment.