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Government plans to offer 50% subsidy for hybrid-electric kits

electric car subsidy

As the Government of India puts together an ambition plan called – National Electric Mobility Mission 2020, electric car owners stand to gain as special subsidy is planned.

electric car subsidyThe new Government in Delhi is giving consideration to a subsidy to car owners looking to go the electric way. However, this subsidy is only targeted at four wheeler owners, and not aimed at e-rickshaws. Government of India will be offering a generous subsidy to those wanting to switch to electric model by using special conversion kits. These hybrid electric kits can be used on any vehicle not above two to three years of age.

Offering to bear 50% of installation costs, the government believes that it will go a long way in making hybrid vehicles more attractive and feasible for car owners in India. At present there is only one company manufacturing these kits, which are sold at a price of about INR 1 lakh. The government is also keen to rope in more manufacturers so that this venture can be taken up on a larger scale.

Besides pushing for subsidies on use of electric vehicles, the government is also keen to expand public charging stations. A meeting held earlier this month has identified areas such as public parking lots, malls and movie theaters for installation of convenient charging stations so that this facility is available to public within 2-3 kms intervals.

Apart from this, an INR 14,000 crore scheme is also being set for new electric/hybrid car buyers. The project is awaiting clearance from the Finance Ministry with a suggested subsidy of 35% to be offered to pure electric vehicles and 25% benefit for plug-in hybrids.

via Economic Times


About the author

Pearl Daniels

Pearl Daniels

Former freelance writer, Pearl Daniels is in the auto industry since 2011, having established herself as a widely read staff writer since 2013. Her keen eye for industry news, daily need to break down latest events, and quest to not miss a single launch detail, gives you the most refreshing morning news on weekdays.

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