Budget 2015-16: Government support critical for survival: Electric vehicle makers

Government's move to popularise electric vehicles in India has failed as consumers prefer opting for conventional vehicles. The number of electric two-wheelers on Indian roads dropped by 1,00,000 in five years to 4,00,000 in 2013, while only 2,000 electric cars were sold in almost a decade. 

Fearing closure of business, electric vehicle makers have sought government support in the Budget 2015 to give a boost to the sector saying that the National Electric Mobility Mission Plan (NEMMP) 2020 must be implemented at the earliest.

NEMP 2020 was announced by the government in 2013. But, the lack lustre attitude of the government in taking concrete decisions has hampered the growth of electric vehicles in India. 

From over 25 players in the electric vehicle industry only four-five electric vehicle makers are left. If the government does not chalks out a plan soon to save this industry, then even these electric vehicle makers would be forced to opt out of the segment.

NEMP 2020 had envisaged the government providing support to the tune of Rs 13,000 crore to Rs 14,000 crore over a period of 5-6 years with sales projection of 60-70 lakh units of the full range of electric vehicles. 

Pravin Shah, Chief Executive, Mahindra & Mahindra, Automotive Division highlights the importance of government support, by stating that some sort of allocation in the Budget 2015 will help in making the electric vehicles more affordable for consumers as the current cost of these vehicles is very high.

Shah explains that creation of infrastructure, such as charging stations, reducing import duties on components till the time homegrown technology is developed and providing R&D incentives will help in the growth of the electric vehicle industry. He also said that asking states to take up electric mobility as a priority would go a long way in making the initiative a nationwide success.