Wel burnt point is indication for more current flow through wire
If generator is ok still recommend to get it checked by load meter regarding charging ...[its bush of generators that fails rather coil in my experience and daweoo generator bushes are not replaceable to my knowledge ]
Check generator wire is not touching body espcially on high rpm [once happened to me and also my audio system was restating at high speeds ]
Do Install relay for lights ....
Hope above measures solve ur issue .