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Home arrow News arrow Automotive arrow MNRE's incentive scheme gives boost to Indian Electric Vehicle Industry
MNRE's incentive scheme gives boost to Indian Electric Vehicle Industry Print E-mail
Written by Anand   
Tuesday, 23 November 2010
New Delhi: The Ministry of New & Renewable Energy (MNRE), Government of India has announced the much awaited incentive scheme for Electric Vehicles in India by which the manufacturers of Electric Vehicles will receive financial incentive for each Electric Vehicle sold in India.

The scheme envisages incentives of up to 20% on the ex-factory prices of the vehicles, subject to a maximum limit. The cap on the incentive will be Rs.4,000 for low speed electric two wheelers, Rs.5,000 for high speed electric two wheelers and Rs. 1 lac for an electric car. "The incentive scheme is a classic example of proactive working of Government of India and the Indian Electric Vehicle industry, where at each stage and very frequently the Industry was consulted and taken into confidence for developing the scheme and creating the systems of its successful implementation," said Sohinder Singh Gill, Director- Society of Manufacturers of Electric Vehicles (SMEV) and Chief Executive Officer-HERO Electric.

Sohinder Gill highlighted that the manufacturers will have to get registered for availing this scheme and there will be strict criteria’s for registration to ensure that only genuine manufacturers are given the benefits.

Some of the eligibility criteria’s being imposed are – Electric Vehicles must have at least 30% indigenous content, a sizable operation in retail and after sale service outlets and a multi-point check system for accounting the real retail sale. The scheme will be operational for the remaining part of the current fiscal 2010-11 and will continue in next fiscal 2011-12 also.

He further added that the incentive scheme will act like a lifesaving drug for the EV industry which is almost in the ICU with stagnation in growth in the last 1 year. It will be particularly beneficial for the Electric Two-wheeler and small Car category because these are the only two segments where the products are available.

V.U.Giri,(son of Late President of India V.V.Giri) and Secretary General – SMEV , the only representative body for Electric Vehicles in India and globally , added "This most awaited incentive scheme would definitely provide the much needed impetus to the Industry." World over the countries are offering big incentives for adoption of Electric Vehicles and in countries like China it has led to a massive growth of Electric Vehicles. Delhi as an example where similar incentive scheme led to a healthy growth in volumes and now there are more than 40000 electric scooters on Delhi roads.

HERO Electric is the market leader in the Electric two-wheeler segment and Sohinder Gill is very hopeful of doubling their volumes as a result of this scheme.

Amit Garg, Head-Marketing, HERO Electric and Executive Head- SMEV adds, "It is now proven without doubt that even in countries like India, where major percentage of electricity comes from the polluting thermal power, the Electric Vehicles will help reduce the vehicular pollution in a significant manner. Also the amount allocated towards the subsidy is a fraction of what India will save in terms of reduced Crude oil imports. "

SMEV has 34 members, which include Electric Vehicles Manufacturers and Component manufacturers.

SMEV is now actively pursuing with the government for the next major milestone - the announcement of National EV policy which will have far reaching positive impact and implications on the Indian transport sector.
 
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