The government policies indeed do decide the way the different automobile segments work in India. The sub 4 meter length cars would get a tax benefit of 12 percent is the policy that has attracted the major car makers to being in sub 4 meter sedans and SUVs and avail that tax exemption. And another segment which is soon going to warm up due to the government policies is the electric vehicles segment and the first warrior will be the Mahindra-REVA E20.
The Mahindra TopGun, Mr. Pawan Goenka in an interview with CNBC-Awaaz has stated that the car is ready to be launched commercially but the company is waiting for the government policies to be announced in the field of electric vehicles. Only if the government provides subsidies for the electric vehicles, Mahindra will be able to price its niche offering at a competitive price tag and find takers for the car.
The Prime Minister of our country, Mr.Manmohan Singh unveiled the National Electric mobility Mission 2020 a fortnight ago but the amount of subsidies on offer for the electric vehicles will be disclosed clearly in the 2013 Union Budget. The Union Budget of the country which would get announced on the 28th of February and will clearly state the subsidies on offer following which the electric car will be brought in the market. Many companies are waiting for the announcement of the budget to launch their cars.
And since we were talking about the heating up segments, Mahindra’s sub 4 metre sedan, Verito CS’s launch was also confirmed by Mr.Goenka as he stated that the car will be launched in the next 3 months. We believe April would be a safe bet for zeroing in on its launch date. Reports suggest that the car might as well get the 100 BHP engine found in the Quanto to make it quite the swift mover. Electric-cars, Compact Sedans, Compact SUVs and every segment of SUVs that follows, is there a segment where Mahindra is not planning an onslaught?