Government high on rolling out subsidies for Electric Cars by April 2014
The ministry of heavy industries has concrete plans to bring in subsidies for electric vehicles in India. As part of National Electric Mobility Mission Plan, the final decision would be taken by April 2014. While there are several factors behind promotion of electric powered vehicles in India. And one of the most obvious reason is the “green step” towards constantly deteriorating environment, and is also an attempt to make it pollution free. Apart from this, the compact design of these vehicles is very much suitable for city use, as they can be parked easily in confined spaces.
Talk about the most popular names in this category of vehicles, Mahindra's e2o and Toyota's Prius, not just being eco-friendly in nature, but also delivers performance with utmost fuel efficiency. Also in the scenario of rising fuel prices, these vehicles would win their position in the coming future. These subsidies would result into delivering cheaper priced electric vehicles in India. For instance, if the vehicle costs around Rs 6.5 lakh, then the subsidy of 35 percent would be regulated, while in case of two-wheelers the margin is expected to be higher than the mentioned percentage.
Commenting on the SIAM's conference, Ambuj Sharma, Additional Secretary, Ministry of Heavy Industries, placed reasons for the impediment for finalizing the step towards this electric vehicle policy has been the sluggish Indian economy. He also added, "The government is hard pressed for cash. The level of incentives which we are thinking is to the tune of Rs 12,000 crore over the next seven years, till 2020. On an average about Rs 2,000 crore will be provided as incentive, which is a big sum. We are trying to tie-up with the finance ministry, as to how best we can tie-up on incentives. The first two years, it will be low, we have to manage with the budgetary provision, but in the years to come, once the Indian economy will grow faster and the incentive will be higher, government will be much more liberal in offering incentive.”
The government is also pitching towards building the market for electric vehicles in India, and in this regard they have had several interactions with the automotive industry in the past. Till 2020, if all things workout then the ministry expects a penetration of 4.5 million two wheelers, 1.5 million four wheelers, that sums upto 17% share of total sales.
Source: ET