[dZired]

SOURCE: TOI

Finally the government has started acting in the correct direction. It would now be interesting to see which manufacturers jump into the EV market.

Buying a hybrid or an electric car may soon fetch you a subsidy from the government, which is readying a Rs 14,000-crore scheme to push green vehicles.

The subsidy will be a proportion of the difference between the price of a car running on fossil fuel and that of a green vehicle, said sources involved with the discussions.

The heavy industry ministry, which has moved a proposal for clearance by the finance ministry, has suggested that the maximum subsidy of 35% should be given to pure electric vehicles, while a 25% benefit should be provided for plug-in vehicles that can drive for at least 15km at one go.

Similarly, the purchase of mild hybrids will fetch you a 15% subsidy, while a stronger version will get a 25% benefit.

Currently, only a handful of hybrid models are available in India which includes the Scorpio from the M&M stable, Toyota Prius, Toyota Camry in addition to electric vehicles such as Mahindra e2o.

If the ministry's proposal goes through, the government will, for instance, provide a subsidy of around Rs 1 lakh on the purchase of a hybrid Toyota Camry, which costs around Rs 33 lakh in Delhi, while the one running on petrol is priced at Rs 28 lakh.

The government is hoping that the subsidy, which will routed through auto companies and will result in a reduction in prices, will encourage more Indians to shift to green energy. Although the scheme is expected to cost the exchequer Rs 14,000 crore till 2020, savings in fossil fuel usage has been estimated at Rs 60,000 crore over a six year period, said an official.

Several countries such as the UK, China, Germany and some states in the US and Canada had introduced sops, including subsidies and tax benefits, to promote electric vehicles.

Although the government discussed the plan in the past, it has failed to move on the proposal. It is only now that the heavy industry ministry has sent the proposal to the expenditure finance committee headed by the expenditure secretary. Sources said the ministry has also included the issue in its 100-day work programme submitted to prime minister Narendra Modi.

"The entire process, which will include cabinet approval, should take around two to three months," said an official. But he refused to put any timeline on when the subsidy scheme will be in place.

[Sahil]

BMW has timed the launch of the 7 Hybrid and i8 well. The budget should give the hybrid cars a boost.
MBIL has planned to get the S400 Hybrid in too, hopefully they will fast track it after the budget.

[amohit]

Rs 1L subsidy on a car costing Rs 33L. I don't think this kind of subsidy will help sway my decision in favor of hybrid Camry.

It would have been better, if the electric vehicles were exempt from excise/sales tax and registration charges.

It would have also helped if instead of giving 14k Cr as subsidy, this money was spent on setting up the battery recharging infrastructure in top 100 urban centers.

[ST7677]

Completely, agree with amohit.

Since most components of hybrid vehicle are imported they get hit by excise duty much more than the subsidy being offered later. It's still a half hearted, on paper attempt.

[invidious]

But what would be the subsidy on a Mahindra e20?

[sgiitk]

Good step. A lot of city onnly cars may switch to GREEN.

[methecupid]

Maybe a little OT, but not much there for the automotive industry there in this budget. Whereas a lot of finer details were provided for others, it lack of specifics for the auto industry was very conspicuous with it's absence.

The FM has reiterated that the decreased customs has been extended till the end of the year, and 'hopes the industry shows recovery'

[tsk1979]

Currently, only a handful of hybrid models are available in India which includes the Scorpio from the M&M stable

Hybrid scorpio?
Or are they talking about the Start stop scorpio.
I guess if you put a "hybrid" sticker on the car, you get 15%?

[deep_bang]

Originally Posted by tsk1979

Hybrid scorpio?
Or are they talking about the Start stop scorpio.
I guess if you put a "hybrid" sticker on the car, you get 15%?

I was amused that whoever wrote the article does not know the head or tail of what a hybrid is about.

[samabhi]

It seems that there is also an upper limit on the maximum subsidy allowed even for full EV. I was told by an e2O sales person, that at the maximum it will be 1L.

[MunnabhaiMBBS]

Electric car owners to get subsidy under NMEM.

NMEM: National Mission on Electric Mobility.

Proposer: Hon. Delhi government.

Applicability: Any vehicle < 2 / 3 years old. Excluding E-rickshaws.

Procedure: Retro-fitment of specialized conversion kit in vehicles.

Proposal:
- Installation of specialized conversion kit - Maximum of 50% of subsidy.
- Identification & installation of public charging points.

Cost of conversion kit: less than INR 1,00,000/-

Good to know information: Proposals awaiting clearance from Finance ministry.
- Pure electric vehicles - Maximum 35% of subsidy.
- Plug in vehicles capable of plying at least 15 Kms in single charge - Maximum 25% of subsidy.

All the best!

Source - http://economictimes.indiatimes.com/...w/38786427.cms

[samabhi]

Folks, any further update on when this new 35% subsidy through NMEM will be active? Or is this going to be another case of watch and scrap it?

[ad3952n]

Folks! Our cars in India have been running on Petrol and Diesel primarily and in the last decade the alternates to them have come in the form of CNG and LPG. I believe a far better option of having a pocket friendly and environmental friendly car is, to own a hybrid or a electric car.

India has just a few hybrid and electric cars, namely, Toyota Prius, Mahindra Reva, Honda Civic Hybrid (discontinued) and Toyota Camry among the thousands of other petrol and diesel cars and the CNG/ LPG cars.

Do you think, all the existing car brands in India should provide the customers with a choice of either a Electric or Hybrid variants too in all their car models and all segments? Will these Hybrid or Electric variants of cars sell respectably in front of their Petrol and Diesel cousins?

Please share your thoughts.

Thanks

[Marauder]

Originally Posted by ad3952n

Do you think, all the existing car brands in India should provide the customers with a choice of either a Electric or Hybrid variants too in all their car models and all segments? Will these Hybrid or Electric variants of cars sell respectably in front of their Petrol and Diesel cousins?

Yes, they should, just like every car in India should come with atleast 7 airbags as standard, just like there should be lesser taxes on cars and just as there should be no corruption in the country. I think nobody would refute the option of having electric variants of every car but there needs to be infrastructure for the smooth running of electric/hybrid cars on the road.
There should be charging stations like petrol pumps and people need to be encouraged to buy electric cars by way of some monetary benefits to the buyer. There should be lower taxes and excise cuts on electric cars. If such steps are taken then most foreign carmakers that have hybrid technologies would bring their vehicles to India. These variants would only then sell respectably in front of their petrol/diesel cousins.

[ad3952n]

Originally Posted by Marauder

there needs to be infrastructure for the smooth running of electric/hybrid cars on the road. There should be charging stations like petrol pumps and people need to be encouraged to buy electric cars by way of some monetary benefits to the buyer.

100% agree with you! India suffers extensively from a polluted environment more than any other country and Diesel/ Petrol vehicles have a major share in it. Just like with the introduction of LPG and CNG, the govt. installed the requisite infrastructure similarly for selling these cars appropriate arrangements can be done and these Electric/ Hybrid vehicles might surely become the next big thing here.

As far as giving benefits to the buyers is concerned, I surely agree that if given a good deal then the buyers can surely go in for buying these cars. I mean as it is we get a number of benefits for buying the diesel or petrol car from dealers et al.

Also, you will agree that the running cost of an electric car is cheaper than diesel or petrol car and these hybrid and electric cars are cheaper to maintain too.

Thanks