According to reports, the ministry of new and renewable energy (MNRE) has provided financial assistance for the purchase of new battery-operated vehicles (four wheelers and two wheelers) and supported 47,000 vehicles so far. However, no new proposal could be supported due to utilization of budget for liquidating the committed liabilities in the past few years, an official statement said.
Several companies have complained of a drop in sales and shutting down of dealerships since sales of electric vehicles (EV) had not taken off. Companies like Mahindra & Mahindra had also said that they would not bring in new launches. “While the Society of Manufactures of Electric Vehicles has informed about the reduction in the sales of electric vehicles, this can not be attributed to non-availability of subsidy alone,” the statement said.
According to a report from MNRE, lack of awareness is often cited as one of the main reasons for sales of EVs not taking off. Also, pure battery EVs are very expensive and are known to be less successful than hybrid electric vehicles since the initial cost is much higher.
The ministry of heavy industries and public enterprises has taken initiatives to support promotion of large scale electric vehicles under its National Electric Mobility Mission to continue the subsidy for promoting electrical vehicles. The National Electric Mobility Mission Plan 2020 envisages around seven million electric and hybrid vehicles in seven years, and subsidy schemes attempt to help achieve the target.