We informed you back in Apr 2010 about the Govt. of India planning to encourage the Electric cars and two wheeler industry via financial incentives, it has come to a reality now. Ministry of New and Renewable Energy (MNRE), Govt. Of India has announced a great incentive program to promote the development and sales of Electric Vehicles In India. As per the incentive scheme declared, Govt. has decided to provide a 20% rebate on the ex-factory price of the electric vehicles. This will mean that there will be a drop of Rs. 4000 in the price of low-speed electric two-wheelers. This rebate will be about Rs. 5000 for high speed two-wheelers. For a seven seater three wheeler passenger vehicle, it will be Rs. 60,000 of rebate and about Rs. 1 Lakh for an electric car. In total, Govt. will provide financial incentives of about Rs. 95 Crores. Owing this these rebates, the Society of Manufacturers of Electric Vehicles (SMEV) expects a growth of about 100% in electric-vehicle sales in the near future.
Happy with this decision, SMEV director Sohinder Gill quotes
“This could have an immediate impact on sales of electric two-wheelers. In terms of monthly sales, we expect an immediate doubling of sales. We have convened a meeting of our members this week to see how quickly we can pass on the benefits to consumers. Although these incentives are for manufacturers to carry out R&D activities and to increase capacities, we will surely pass on partial benefits to the buyers.”
As per the allocated budget in this financial year, the govt. will support 20,000 units of low speed and 10,000 units of high speed two-wheelers. It will be 80,000 units and 20,000 units of these vehicles in the coming financial year. The largest beneficiaries of this rebate will have electric vehicle brands like :
- Hero Electric
- BSA Motors
- Avon Cycles
- Mahindra Reva
Lets wait and watch the impact of this rebate and consumer response to this rebate. We will keep you updated.