Making Indians Buy More Electric Vehicles; Government Plans Rs 50,000 Subsidy To Incentivise Their Sale

To incentivise electric vehicle (e-vehicles) ownership in the country, the government is considering proposals such as a provision of rebates of up to Rs 50,000 to customers, reports Economic Times (ET).

“The idea is to give enough incentives so that the prices of electric vehicles match the current conventional internal combustion engines so that prospective buyers start giving preferences to electric vehicles over conventional vehicles,” said a government official to ET.

A cabinet note on these proposals is being drafted and decision on the same could be taken soon.

Such incentives will be rolled out in a group of select cities in the first phase, and the sops would be linked to battery size and type of EV.

"This could be clubbed with waiving of road and registration taxes by states and partial or complete exemption from parking charges for electric vehicles, resulting in substantial savings for EV buyers,” the official added.

According to the industry body Society of Indian Automobile Manufacturers (SIAM) the two main factors restricting EV sales in India are the initial prohibitive cost of electric vehicles when compared to their petrol and diesel counterparts and the relatively low range per charge. However, EVs are operationally cheaper than conventional cars.

Easing Rules

In December 2018, the Union Power Ministry issued guidelines that will provide the necessary framework for setting up charging infrastructure in the country and allow electric car owners to charge these vehicles at their homes and offices.

To incentivise the use and ownership of e-vehicles (EVs), those who charge their EVs at their homes will now be given priority access to electricity from utilities across the country.

Despite these measures, electric car sales in India plunged by 40 per cent in the last financial year (FY18) as compared to FY17. A total of only 1,200 units were sold in the year. But the sales of electric two-wheelers have increased in the same period.

Also Read: India’s E-Rickshaw Revolution And How It Trumped China In Electric Vehicle Sales