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Electric two-wheeler vehicle sales up 20% after introduction of MNRE subsidies

Panchabuta had reported in November last year that, India had  launched incentive for Electric Vehicle makers of upto 20% of ex-factory price.  Two-wheeler makers have also been given a subsidy ceiling of Rs 4,000 for low-speed vehicles and Rs 5,000 for high-speed vehicles. A ceiling of Rs 100,000 has been placed on Electric Cars.

Manufacturers would, however, have to register with Society of Manufacturers of Electric Vehicles(SMEV) for availing of the scheme. Registration would be provided on meeting eligibility norms, which include having 30 per cent indigenous content in the vehicles sold, a sizeable operation in retail and after sales outlets and a multi-point check system for accounting the retail sale.

In a major announcement for the EV community earlier this month, presenting the General Budget 2011-12, Shri Pranab Mukherjee, Finance Minister informed that to provide green and clean transportation for the masses, a National Mission for Hybrid and Electric Vehicles will be launched in collaboration with all stakeholders.

The total incentive package of Rs 95-crore incentive is being extended by the Government to the industry. Most of the manufacturers have announced that they will be passing on this benefit to the consumer. 

As Panchabuta has reported, car maker Mahindra Reva Electric Vehicle (MREV) has recorded a three-fold rise in average monthly sales in the last three months, boosted by incentives announced by the Ministry of New and Renewable Energy (MNRE).

According to reports, On the back of the incentive package for electric vehicles announced by the ministry of new and renewable energy last November, average monthly sales of electric two-wheelers has risen 20 per cent, says Sohinder Gill, director, Society of Manufacturers of Electric Vehicles.

“This incentive is not available for the unorganised sector. So, when their sales come down, that obviously comes to us. And, when the prices come down, that increases the volume. Both these things are happening,” says Gill, also CEO of electric two-wheeler manufacturer, Hero Electric. For 2010-11, the government will support sales of 20,000 units and 10,000 units of low-speed and high-speed two-wheelers, respectively, while it will be 80,000 units and 20,000 units in 2011-12.

“In this fiscal year-end, we will not touch even that figure. But whatever is left in this year, will be carried forward to 2011-12,” he said.

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