India Now Expected to Roll Out EV Incentive in April 2014 Under National Electric Mobility Mission Plan

DEC 14 2013 BY ERIC LOVEDAY 7

Not too long ago, India’s Mahindra Reva, the nation’s only EV maker, announced it would scale back its EV efforts due to the government’s inability to move forward with implementing promised incentives for plug-in vehicles.

Mahindra Maxximo Electric - Planned for Future Launch

Mahindra Maxximo Electric – Planned for Future Launch

The government had been dragging its heel for seemingly forever on getting incentives in place to make EVs more affordable.  This angered Mahindra Reva, so much so that it basically put on hold the upcoming launches of 3 more EVs (Mahindra Reva does currently sell 1 electric vehicle in India: e20).

Well, the government responded by saying an incentive package is coming, but now it won’t be here until April 2014 (India’s government originally promised that incentives would be in place by March 2013).

The incentives expected to be in place next April are less than previously promised, but something is better than nothing.  As the Financial Times reports:

“On an average about Rs 2,000 crore will be provided as incentive, which is a big sum. We are trying to tie-up with the finance ministry, as to how best we can tie-up on incentives. The first two years, it will be low, we have to manage with the budgetary provision, but in the years to come, once the Indian economy will grow faster and the incentive will be higher, government will be much more liberal in offering incentive.”

Now, it should be noted that Rs 2,000 crore ($320 million US) is the total amount expected to initially be set aside for all EVs purchases.  That amounts to roughly 1/5 what India stated it would put away for EVs in the past.  It’s still a sizable figure though, so let’s hope India makes good on its promise this time around.

Source: Financial Times

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7 Comments on "India Now Expected to Roll Out EV Incentive in April 2014 Under National Electric Mobility Mission Plan"

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Mikael

That could turn into a substantional amount of EV’s. With a big incentive like $15 000 per car that would last to over 200 000 cars.

The Reva e20 costs about $10 000 without incentives in India. Cutting the price in half with incentives of $5 000 per car would make it last to 640 000 cars.

That is something… even though there is probably 200 000 million cars on their roads (someone got good statistics?)….

Sanjay

Hi, actually insideevs calculation is incorrect. Rs. 2000 crore = 0.32 billion US dollars.

Last time Indian government gave a incentive of INR 100,000 (~ 1600 USD) . If they will give the same incentive than the price difference b/w E20 and its ICE competitors will be reduced to 200000 which is still 50% higher than the cost of ICE vehicle.
The main hindrance (IMO) is that E20 has range of 100 KM on full charge (company claimed) in real world it is 75 KM. Indian people will not buy unless it has same cost as ICE for this much range. They should increase the range and promote in Metro cities by giving charging facilities. If possible give the option of different battery configuration like Tesla.

Mikael

Let’s hope that they put it at a level so that the EV’s are booming. If not, then I hope they increase the incentives until that boom comes.

Mahe

How about electric two wheelers? Will incentives also be offered for this segments?

abhishekifmr

The plan is to give subsidy for all EV units. Last time the subsidy for INR 4000. Also to correct in case of cars subsidy was 20% of cost or INR 100000 whichever is low.
All said i dont see this subsidy to start by June 2014. GoI simply dont have any money 🙁