India's government will soon introduce a robust incentive plan to promote the use of electric vehicles (EVs). The scheme, laid out by India's Society of Manufacturers of Electric Vehicles and approved by the nation's Ministry of New and Renewable Energy, will provide manufacturers of EVs with incentives of up to 20 percent, subject to a capped limit, on each battery-powered vehicle sold.
Though the approved plan provides incentives for most everything that rolls along using electric power, it's expected to boost the sales of battery-powered two-wheelers more than anything else. The cap on incentives is laid out as follows: 4,000 INR ($90 U.S. at the current exchange rate) for low-speed electric two-wheelers, 5,000 INR ($110 U.S.) for high-speed battery-powered two-wheelers and 100,000 INR ($2,196 U.S.) for electric cars. The incentives seem measly, but considering that the average electric two-wheeler sold in India costs just 25,000 INR ($549 U.S.), the kickback is actually way more significant than one might assume.
Society of Manufacturers of Electric Vehicles director Sohinder Gill outlined the projected impact of India's incentive scheme, stating:
[Source: Yahoo News]
Though the approved plan provides incentives for most everything that rolls along using electric power, it's expected to boost the sales of battery-powered two-wheelers more than anything else. The cap on incentives is laid out as follows: 4,000 INR ($90 U.S. at the current exchange rate) for low-speed electric two-wheelers, 5,000 INR ($110 U.S.) for high-speed battery-powered two-wheelers and 100,000 INR ($2,196 U.S.) for electric cars. The incentives seem measly, but considering that the average electric two-wheeler sold in India costs just 25,000 INR ($549 U.S.), the kickback is actually way more significant than one might assume.
Society of Manufacturers of Electric Vehicles director Sohinder Gill outlined the projected impact of India's incentive scheme, stating:
At present, India's electric two-wheeler market tops out at around 85,000 units annually. A doubling, expected to come courtesy of the incentive program, would rocket segment sales to 170,000 strong.This could have an immediate impact on sales of electric two-wheelers. In terms of monthly sales, we expect an immediate doubling of sales. Moreover, those electric vehicle makers who were getting frustrated, will now feel encouraged to grow the market further. Although these incentives are for the manufacturers to carry out R&D activities and to increase capacities, we will surely pass on partial benefits to the buyers.
[Source: Yahoo News]
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