Electric vehicle manufacturers have praised the union government’s decision to increase incentives for electric vehicles under the Faster Adoption and Manufacturing of Hybrid and Electric vehicle scheme. To increase sale of such vehicles, centre on Friday decided to increase the incentives by 50% on certain vehicles.
“We welcome the govt’s continued support to electric vehicles. Sustainable mobility solutions are very important for the future and TVS is investing significantly behind this. The improved incentives for electric two-wheelers will increase penetration and encourage further indigenous investments in future technology,” said Sudarshan Venu, Joint Managing Director, TVS Motor Company.
Traditional two-wheeler manufacturers like Bajaj Auto and TVS Motor Company have already launched their respective electric scooters, Chetak and iQube in 2019. Hero MotoCorp has also formed collaboration with Taiwanese company Gogoro Inc for developing electric vehicles.
The union government has been urging vehicle manufacturers to increase their investments in development and manufacturing of electric vehicles to reduce pollution and import of crude oil. Besides traditional manufacturers some of the electric startups like Ather Energy, OLA Electric and other startups have ambitious plans of launching their respective products in the segment.
According to Nagesh Basavanhalli, , managing director and group chief executive, Greaves Cotton Limited the new and revised incentive policy announcement by the government is encouraging which will make electric vehicles more affordable and accessible and further boost the adoption of electric vehicles especially electric two-wheelers and three-wheelers.
“With people becoming more health and environment conscious post pandemic and switching to personal mobility solutions, this announcement will increase the penetration level of electric scooters as well as e-rickshaw,” he added.
As part of the revised guidelines, incentives on two-wheelers have been increased to ₹15000 kilowatt to ₹10000 kilowatt but the cap for such incentives has been limited to 40% of the cost. Energy Efficiency Services Ltd has been mandated with the task of procuring two- and three-wheelers.
“Increase in FAME subsidy on two wheelers, direct fiscal incentives to advanced chemistry cell, auto vehicles and auto components manufacturing by way of introduction of PLI scheme is likely to bring down the cost of Electric Vehicles. The said reduction in cost may help in faster adoption of Electric Vehicles in the country,” Saurabh Agarwal, Tax Partner, Automotive sector, EY India.
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