Pune’s electric bike company, Tork Motors, hasn’t shipped bikes to its dealers since last December, leading dealers to file a police complaint. Tork also issued a termination notice to its employees. Bharat Forge, owning 64.29% of Tork, has written off its investment and is coordinating an orderly shutdown.
Dealers of Pune-based electric two-wheeler manufacturer Tork Motors have lodged a police complaint to address their unsettled dues. The production at Tork’s facility has been halted since last year, and the company has not shipped any vehicles to dealers since December.
An email directed to Kapil Shelke, the Founder & CEO of Tork Motors, received no response.
Kiran Pathare, the Assistant Police Inspector in Pimpri-Chinchwad, confirmed that an investigation is underway, but details remain confidential. He indicated that measures might be taken by next week. In addition, Tork issued a ‘Notice of Role Dissolution and Employment Termination’ to its employees last month, which ETAuto has seen.
The company stated in the email that it needs to dissolve certain positions to realign its workforce with strategic objectives, noting that the decision to terminate employment by July 31, 2024, was made with careful consideration.
Despite not having paid salaries for the past seven months, Tork mentioned that employees would eventually receive their relieving letters.
Established in 2010, Tork Motors produces electric motorcycles and supplies powertrains for two- and three-wheel vehicles. Kalyani Powertrain Limited, a subsidiary of Bharat Forge, owns 64.29% of Tork Motors.
Amit Kalyani, Vice Chairman & Joint Managing Director of Bharat Forge, discussed the company’s investment in Tork Motors following the Q1 earnings, noting the impact of changes in the FAME scheme on the company’s profitability. He emphasized the necessity of provisioning for losses due to these changes and stated that while Bharat Forge has no plans for further investment, they are looking into orderly ways to conclude their involvement.
This situation is problematic for Tork motorcycle customers. Despite being satisfied with the product, they face increasing concerns about warranty and service support, especially as dealerships may close soon. One customer reported issues connecting their charger since last month and is uncertain about future service options despite a three-year warranty on the vehicle and its parts.
