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Electric vehicles sales drop after subsidy scheme ends
Posted on 18 Jun 20124,305 Views Comments
Electric Vehicle (EV) sales drop by 75 percent due to expiry of cash subsidy scheme on EVs.
The subsidy is available to the indigenous manufacturers of electric vehicles, registered with MNRE and then passed on the consumers. Electrotherm, Hero Electric and BSA Electric are amongst the 12 manufacturers of electric two-wheelers. The rest are regional players. Mahindra Reva is the only electric car manufacturer registered with MNRE.
The scheme was to be replaced by National Electric Mobility Plan of the Ministry of Heavy Industries (MoHI) of the Union government, aimed at creating an ecosystem for promotion of electric and hybrid vehicles in the country. Already in an advance stage of discussion, the plan has components like cash subsidy and financing facilities for the end consumers, creating a network for charging of the vehicles, research and development as well as (R&D) incentives for the companies amongst others.
R Chandramouli, COO, Mahindra Reva, the manufacturer of India's first electric car 'Reva', feels that the cash subsidy in India is very less compared to other countries and hopes that this aspect is catered to in the National Electric Mobility Action Plan. "The US government gives a subsidy of $7,500 per vehicle. In China, the national government gives a subsidy of $8,000 and in European countries it is 3,000 euros," he told ET.
Industry fear that the time gap between the expiry of the subsidy scheme and launch of the national action plan is impacting the industry as the skilled workforce created over years is migrating to other sectors for want of work. "We have a manpower of 2,000 people. But they are moving to other jobs. It will be difficult to bring them again if corrective measures are not taken," said Gill, who is also the CEO of Hero Electric.
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