Expressing disappointment over lack of encouragement given to electric vehicles in India, Anand Mahindra asked Government of India to provide special subsidies to carmakers to promote green vehicles in the country.
"We've been disappointed because we were banking on a subsidy that the government had in place for electric cars which has expired. The government was committed to maintain it but hasn’t done so far. So, that has put a sticker price hurdle", Mr. Mahindra commented.
He also said, 'Government has to come back and step in, and weigh in favour of the new rules to promote Green vehicles in India".
Recently, the Ministry of New and Renewable energy (MNRE) closed a scheme under which 20 per cent subsidy was offered to buyers on purchase of electric vehicles (both four-wheelers and two-wheelers). Under the scheme, the MNRE provided a cash subsidy of INR 4,000 - 5,000 on electric two-wheelers and of INR One lakh on four-wheelers. This policy ended on March 31, 2012 and was replaced by a new scheme- National Electric Mobility Mission Plan (NEMMP) 2020.
This scheme envisions around seven million electric and hybrid vehicles in seven years. The government was estimated to prvoide a support of INR 13,000 crore to 14,000 crore over the next 5-6 years.
Mahindra & Mahindra is the only home-grown automajor dealing into electric and hybrid vehicles. It acquired Banglore based electric car manufacturer Reva in 2010 and launched its first electric vehicle e2o earlier this year