Saturday, November 30, 2013

Mahindra & Mahindra seeks subsidy to promote electric cars

In order to improve the support for promoting electric cars in India, Mahindra & Mahindra has asked the government to grant subsidies to automakers to promote green cars.
Given the lack of support for electric cars in India, Anand Mahindra, MD, Mahindra & Mahindra has asked the government to grant subsidies to automakers to promote green cars.
 We've been disappointed because we were banking on a subsidy that the government had in place for electric cars which has expired. The government was committed to maintain it but hasn’t done so far. So, that has put a sticker price hurdle," said Mahindra.


Calling for a favourable policy to promote eco-friendly cars, he said, "I think the government has to come back and step in, and weigh in favour of the new rules."

On March 31, 2012, the Ministry of New and Renewable energy (MNRE) ended a scheme under which 20 per cent subsidy was offered to consumers on purchase of electric four-wheelers and two-wheelers. Under the scheme, the MNRE provided a cash subsidy of Rs. 4,000-5,000 on electric two-wheelers and of Rs. One lakh on electric cars.

The scheme was replaced by National Electric Mobility Mission Plan (NEMMP) 2020, which was announced in January this year. The plan envisages around seven million electric and hybrid vehicles in seven years. It was estimated that the government would need to provide support to the tune of Rs. 13,000 crore to Rs. 14,000 crore over the next 5-6 years.

In March this year, Mahindra & Mahindra had launched its first electric car 'e2o' priced at Rs 5.96 lakh (on road Delhi, after state subsidy), almost three years after it acquired Bangalore-based electric car maker Reva.

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