India To Invest In Electric Vehicle Industry Again
NEW DELHI, India – The Indian government initiated a US$ 2.3 billion incentive program to the electric vehicle industry and to enhance the adoption of greener and cleaner vehicles.
The electric vehicle industry expects the government to expedite the roll out of the National Electric Mobility Mission Plan 2020 (NEMMP 2020 plan) intended to aid manufacturers of electric vehicles in India.
Successful subsidy program
In the past the Indian government successfully implemented subsidies on electric vehicle sales. “At that time the electric vehicle sales surpassed 100,000 units including cars and scooters but it started to decline after the withdrawal of the Ministry of New and Renewable Energy’s MNRE subsidy in March 2012,” stated Sohinder Gill, Director Society of Manufacturers of Electric Vehicles (SMEV) and CEO of Hero Electric. “In 2013 sales were down to merely 21,000 units only. A few years back India had 65 electric vehicle manufacturers of which merely 10 are operational now.”
“To expedite the NEMMP 2020 plan India could emerge as the leader in the electric vehicle technology that is being adopted worldwide. With the support of the national government the Indian manufacturers could transform the country into an export hub of electric vehicles instead of being the dumping ground for inferior Chinese’s products,” said Sohinder Gill.
Four to five million two-wheelers
The industry echoes the Government’s view expressed in the NEMMP plan that the production of electric vehicles in India is an investment that can provide economic growth, quality jobs and environmental improvements.
“The target of the NEMMP Plan is to put six to seven million electric vehicles on the road by 2020 of which four to five million are expected to be two-wheelers. This could save more than two million tons of fuel by 2020,” expects Sohinder Gill.
“Though the majority of the electric vehicle companies have shut their business in the past two years, we hope that the industry can still be revived if NEMMP2020 is implemented in the next three to four months. The NEMMP is therefore the lifeline on which the fate of the electric vehicle industry is hanging,” said Sohinder Gill.