The sorry state of the global economy is hurting industries all over the world, including in India where electric vehicle makers are experiencing slow sales of both two- and four-wheeled machines. Compounding the problem are low fuel prices that make EVs a tough financial sell. For these reasons, Indian automakers and cycle manufacturers are urging the government to step in with incentives aimed at reducing the cost of electric vehicles.
According to Sohinder Gill, chief executive of Hero Electric, "This (industry) has to be seeded by the government by incentivizing people to buy our products." Specifically, Gill is calling for a subsidy of at least 25 percent on the purchase of EVs for two to three years along with a drop in VAT from 12.5-percent to just 4-percent. Another suggestion is to set an artificial floor on fuel prices using an adjustable tax, though we somehow doubt that would be an attractive prospect to India's politicians.
[Source: Live Mint via Green Car Advisor]
According to Sohinder Gill, chief executive of Hero Electric, "This (industry) has to be seeded by the government by incentivizing people to buy our products." Specifically, Gill is calling for a subsidy of at least 25 percent on the purchase of EVs for two to three years along with a drop in VAT from 12.5-percent to just 4-percent. Another suggestion is to set an artificial floor on fuel prices using an adjustable tax, though we somehow doubt that would be an attractive prospect to India's politicians.
[Source: Live Mint via Green Car Advisor]
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