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Old 23rd November 2010, 00:09   #1
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Default Electric cars get subsidy booster of upto 1.0 lakh rupees

http://www.financialexpress.com/news...ooster/714539/

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The Union ministry of new & renewable energy (MNRE) on Monday said it would provide Rs 95 crore as subsidy to electrical vehicles for the remaining part of the 11 th five-year plan. The scheme, which came into effect from November 11, seeks to give incentives of up to 20% on ex-factory price of the vehicle .
Manufacturers registered with the government will get the subsidy subject to a cap of Rs 4,000 for low-speed electric two-wheelers, Rs 5,000 for high-speed electric two-wheelers and Rs 1 lakh for a car. The move is expected to jumpstart the industry that had been stagnating over the past one year.

“With this relief, we expect genuine manufacturers to benefit and those involved in mere trading and distribution getting eased out as customers get better price from the manufacturers. The actual impact of the incentives will be seen in the next 2-3 months,” Hero Electric CEO Sohinder Gill, who is also director of the Society of Manufacturers of Electric Vehicles (SMEV)

Hero Electric, Mahindra Reva Electric Vehicles and Avon Cycles are the leading players in the segment.

Criteria for being eligible for the subsidy include having at least 30% indigenous content in the vehicle, a sizeable operation in retail and after sales service outlets and a multi-point check system for accounting the real retail sale.

The scheme will be operational for the remaining part of the current fiscal and continue in 2011-12. In the current fiscal year the government would subsidise 20,000 low-speed two-wheelers, 10,000 high-speed two-wheelers, 100 three-wheelers and 140 four-wheelers.
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Old 23rd November 2010, 05:56   #2
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A welcome move indeed. This will help the sales of electric cars which are perfect for everyday use but the initial cost of buying them negated the benefits.
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Old 23rd November 2010, 07:06   #3
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thank goodness for some good sense at last!
it would be so much better if they gave all electric and hybrid vehicles a tax and excise holiday for the next 30 years so that it could encourage manufacturing and consumer adoption as well.
indigenous content is a bit of a double edged thing - we dont right now have the tech to make those Lithium Ion batteries which can more than double the life of the electric charge as compared to lead acid batteries! more than 50% of the cost of the Reva is down to the Batteries themselves!
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Old 23rd November 2010, 07:48   #4
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Better late than never! Finally our govt has woken up and provided subsidy to non polluting electric vehicles. This is just a first step in the right direction.

With incentives the technologies will come!

The report in DWS Auto says:

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The government has decided to offer 20 percent rebate on the ex-factory price of electric vehicles. This would roughly translate to about Rs. 4,000 for low speed electric two-wheelers, Rs. 5,000 for high speed electric two-wheelers, Rs. 60,000 for seven-seater three wheeler and Rs. 1 lakh for an electric car.
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The government has also decided to offer incentives to 100 units of three-wheelers and 140 units of passenger cars in the rest of this fiscal, while it will be 166 units and 700 units respectively in the next financial year.
Is this enough? Or is it a case of too little, too late

Last edited by Abes : 23rd November 2010 at 08:00.
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Old 23rd November 2010, 08:19   #5
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Good news indeed; so can we expect Reva to become a little cheaper?

But I've a question here; when the Govt says 20% rebate, did the Reva cost about 5 Lakhs so that it would become 1 Lakh cheaper? OR the max cap limit is 20% or 1 Lakh whichever is lesser? I couldn't get the point.
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Old 23rd November 2010, 08:51   #6
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Here is an article regarding this news on Vicky Blog:
Incentives for electric vehicles | Vicky.in | Indian Automobile Blog | Car Reviews | Bike Reviews | Test Drive Reports | Pictures | Videos
(Can we all now except Reva to become cheaper & Yo Bikes to get nice electric scooters & mopeds with good looks & good driving range ???)
An update:
GM is ready to showcase electric vehicle, here in India but still there is no confirm news that its whether a Beat EV or Chevrolet Sail EV.
(Link: http://indianautosblog.com/2010/11/g...+Autos+blog%29)

Last edited by dhrishikesh : 23rd November 2010 at 08:54.
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Old 23rd November 2010, 10:26   #7
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Originally Posted by aargee View Post
Good news indeed; so can we expect Reva to become a little cheaper?
Reva cars would become cheaper by about 66K for non-AC model, about 80K for the AC model & about 85K for the Reva classic model.
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Old 23rd November 2010, 11:31   #8
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A very good move but this does not necessarily mean that pollution will be lesser as our electricity is largely generated from burning Coal. Cheaper Reva variants will kick-start the industry while the upcoming Chevrolet EV in India will also benefit. Sad that the Prius doesn't benefit.
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Old 23rd November 2010, 12:01   #9
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nice move.

Actually nice that the prius and civic hybrid do not benifit - will encourage local manufacturing.

As suggested by shankar balan - waiving off the taxes / charges at the customer end as well would give this the right movement, this though a good move, might not be sufficent.
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Old 23rd November 2010, 12:17   #10
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Good move! .

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Originally Posted by designersf View Post
A very good move but this does not necessarily mean that pollution will be lesser as our electricity is largely generated from burning Coal. Cheaper Reva variants will kick-start the industry while the upcoming Chevrolet EV in India will also benefit. Sad that the Prius doesn't benefit.
Yes, overall environmental impact will not be positive right away. When the energy industry ultimately moves towards cleaner methods of generating electricity, there is expected to be an overall benefit to environment.

In short term this move might help in giving some respite to the smoke choked metros by encouraging some of the new vehicle buyers to consider 'zero' emission vehicles.
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Old 23rd November 2010, 15:09   #11
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Yo speed too will become 5000 rs cheaper! That's a good price for electric scooter.
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Old 23rd November 2010, 21:23   #12
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NIce move.

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Originally Posted by echo77 View Post
In the current fiscal year the government would subsidise 20,000 low-speed two-wheelers, 10,000 high-speed two-wheelers, 100 three-wheelers and 140 four-wheelers.
That number seems to be too small. How do they decide who gets the subsidy. I see a chance of corruption there.
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Old 23rd November 2010, 21:34   #13
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Good decision. This will help the environment.
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Old 24th November 2010, 07:55   #14
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But from where the electricity is going to come? There is already loads of load shedding in almost all the metro cities. If everybody starts charging their cars means more gen sets on kerosene / diesel creating more pollution.

I this this should be only limited to hybrid cars having all other energy saving mechanisms like regenerative breaks , may be solar panels etc etc.
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Old 24th November 2010, 10:07   #15
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That is an age old argument against electric vehicles, where the electricity would come, and it would inevitably pollute. Electric vehicles are NOT pollution free, but amount of pollution by running a electric vehicle for 50 kms (including the pollution caused to make that much energy) is quite less compared to 50 kms worth petrol/disel burnt. Besides, when I bought electric bike, frankly environment saving was the last thing on my mind. I bought it because it was a very low running cost vehicle.

Besides except imported Prius, there are no hybrid/solar cars commercially sold in India as on today. Please correct me if I am wrong.
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