E-Vehicle Revolution Gets A Boost: Government Takes U-Turn, Says Will Provide Subsidies To Hybrid Cars

The department of heavy industries has proposed to the Expenditure Finance Committee (EFC) to provide subsidies to the tune of Rs 13 crores to promote the use of hybrid cars in India, as reported by Mint. The department works under the Ministry of Heavy Industries and Public Enterprises.

A hybrid car combines a petrol/diesel engine with an electric motor. Such a combination mechanism is used because, while the petrol/diesel engine is more efficient at maintaining high speeds, the electric motors are useful for low speeds and start-stop functions. These hybrid cars switch between the two automatically to save fuel and emit less CO2.

The department has sought to provide concessions to 10,000 buyers of hybrid cars that come fitted with lithium-ion batteries of 0.5-2 kilowatt-hour (kWh). This was proposed at a meeting in the second phase of the current government's flagship -vehicle scheme FAME.

Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) aims to promote and support hybrid/electric vehicles market development and manufacturing eco-system in India.

This reversal of position by the government, which had earlier restricted incentives to only manufacturing of lithium-ion batteries, reportedly comes after heavy lobbying by car companies like Toyota Kirloskar Motor Pvt. Ltd (Prius and Camry hybrid cars) Maruti Suzuki India Ltd (Ciaz hybrid) and Honda Cars India Ltd.

Also Read: India Needs An E-Vehicle Policy