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MNRE Subsidy On Electric Vehicles

Posted on 25/Nov/2010

The ministry of new and renewable energy has decided to offer incentives to electric vehicle makers in the current and the next financial years in a bid to boost the sales of the environment-friendly vehicles.
The ministry will pay up to 20% of the ex-factory price of these vehicles, which the manufacturers are expected to pass on to buyers, said the Society of Manufacturers of Electric Vehicles (SMEV), a lobby group.
In return, the manufacturers will have to use at least 30% indigenous content in the vehicles, maintain a sizeable retail operation and after-sales service outlets.
The cap on the incentive will be `4,000 for a low speed electric two-wheeler, `5,000 for a high speed electric two-wheeler and `1 lakh for an electric car.

Source: http://www.livemint.com/2010/11/23000806/Govt-to-give-incentives-to-ele.html?atype=tp

User Comments

By D Anil Kumar on 14 08, 2011One of the ways to address this, is to have the subsidy paid out to the manufacturers in two instalments of 50% each at the end of the first year and second year of the sale. While the buyer may not get the subsidy immediately, he can be provide from Free after sales service for 4 to 5 years from purchase to offset the cost, including one set of replacement batteries after 3 years.
By Milind Bhide on 16 05, 2011In my opinion the subsidies are provided to promote one cause or the other that means the cause is IMPORTANT.But in this case the cause is not so important and the money making is the first and foremost goal and by providing financial assistance without ensuring the after sales service the government itself is going to keen on eradication of AWARENESS FOR GREEN ENVIRONMENT.R WE FIT ENOUGH TO BE CALLED HUMAN?
By Milind Bhide on 07 01, 2011HAS THE CONCERNED DEPARTMENT SANCTIONING SUBSIDY EVER TRIED TO CONFIRM THAT AFTER SALES SERVICE IS BEING PROVIDED BY THE COMPANIES INTERESTED TO GET SUBSIDY? GO THROUGH THE COMMENT PAGES AND ONE WILL FIND THAT EACH AND EVERY EV MANUFACTURER IS ONLY MAKING BUCKS AND NOT INTERESTED AT ALL IN PROVIDING AFTER SALES SERVICE. WITHOUT CONFIRMATION IF THE SUBSIDY IS GIVEN TO THESE MANUFACTURERS THEN THE DECISION IS A SHEER WASTAGE OF PUBLIC MONEY. I AM SURE THAT ALL EV USERS SHARE MY VIEWS.

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