With the government earmarking Rs.95-crore incentive package for electric two wheelers during the remaining part of the XI Plan, the Society of Manufacturers of Electric Vehicles on Monday expressed confidence that the electric two-wheeler market would witness 100 per cent growth.
As per a scheme approved by the Ministry of New and Renewable Energy (MNRE), the government will provide financial incentive for each electric vehicle sold in the domestic market during the remaining part of the XI Plan (2010-12). The scheme, effective from November 11, envisages incentives of up to 20 per cent on ex-factory prices of the vehicles, subject to a maximum limit.
The cap on the incentive will be Rs.4,000 for low speed electric two-wheelers, Rs.5,000 for high speed electric two-wheelers, Rs.60,000 for seven-seater three-wheeler and Rs.1 lakh for an electric car.
“This will impact sales of electric two-wheelers in a positive manner. In terms of monthly sales, we expect an immediate doubling of sales,'' Society of Manufacturers of Electric Vehicles Director Sohinder Gill said.
“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,'' he added.
On an average, electric two-wheelers are priced between Rs.25,000 and Rs.40,000 depending on the speed range. For this fiscal, the government will support 20,000 units and 10,000 units of low and high speed two-wheelers, respectively.