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Electric vehicles sales drop after subsidy scheme ends
Posted on 18 Jun 20124,297 Views Comments
Electric Vehicle (EV) sales drop by 75 percent due to expiry of cash subsidy scheme on EVs.
Expiry of cash subsidy scheme on electric vehicles before the launch of the national action plan has resulted in 75% drop in sales of electric vehicles since April 2012, said industry players. They now demand extension of subsidy scheme till the announcement of the policy.
"Sales of our bikes are down by 75% in the current fiscal. We have footfalls but they are not getting converted into sales, as consumers find that the subsidy is no longer available," said Avinash Bhandari, joint MD of Electrotherm, the Ahmedabad-based manufacturer of Yo bykes.
The company's sales of bikes doubled to nearly 80,000 in 2011-12 compared to the previous fiscal. It had sold 15,000 bikes in the first quarter of the previous fiscal. The company claims to have 25% share in the electric two-wheeler industry.
Sohinder Gill, director of the Society of Manufacturers of Electric Vehicles, claims that withdrawal of subsidy has resulted in 'not a single electric car sold in April and May'. He claims that plummeting of sales by more than 50% has made business unviable for dealers.
"Close to 33% of the dealers are reverting to their earlier business and around 20% have put down shutters. It is difficult to convince them for persisting in the business. Rental and other operating expenses are high," Gill told ET. The union Ministry of New and Renewable Energy (MNRE) provided a cash subsidy of Rs 4,000-5,000 on electric two wheeler and of Rs one lakh on electric cars. The subsidy scheme ended on March 31, 2012.
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