Financial incentive on electric cars and scooters

The Union ministry of new and renewable energy’s (MNRE) recent decision of 20% financial incentive on ex-factory price of electric cars and scooters sold in India will enable manufacturers to lower the prices and boost sales of green vehicles in India.



Higher incentives from the government in the form of free insurance, registration cost, 0% duty on import of components, rebate and subsidy to OEMs will boost penetration of electrical vehicles (EVs) in India, said Frost & Sullivan.



An executive analysis of the two-wheeler and four-wheeler EVs forecasts the market for electric passenger vehicles to reach 20,400 units by 2014-5 from a miniscule market of 810 units in 2009-10.



Similarly, the two-wheeler EVs market will grow from 1.4 lakh units in 2009-10 to 4.5 lakh units in 2015-16. Energy diversification, security and emission norms getting stringent would be the key drivers for the growth of EVs. However, infrastructure availability, component...

http://www.financialexpress.com/news/Sops-costlier-fuel-to-push-up-electric-car-sales-FampS/726248/