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Mahindra seeks subsidy to promote electric cars

In March 2012, the Ministry of New and Renewable energy ended a scheme under which 20% subsidy was offered to consumers on purchase of electric vehicles

Press Trust of India  |  New Delhi 

Expressing disappointment over lack of support to promote electric cars in India, Mahindra & Mahindra CMD Anand Mahindra today asked the government to grant subsidies to automakers to promote green cars.

"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," Mahindra told reporters at the CII-NID Design Summit.

Calling for a favourable policy to promote eco-friendly cars, he said: "I think the government has to come back and step in, and weigh in favour of the new rules."

On March 31, 2012, the Ministry of New and Renewable energy (MNRE) ended a scheme under which 20% subsidy was offered to consumers on purchase of electric four-wheelers and two-wheelers. Under the scheme, the MNRE provided a cash subsidy of Rs 4,000-5,000 on electric two-wheelers and of Rs one lakh on electric cars.

The scheme was replaced by National Electric Mobility Mission Plan (NEMMP) 2020, which was announced in January this year. The plan envisages around seven million electric and hybrid vehicles in seven years. It was estimated that the government would need to provide support to the tune of Rs 13,000 crore to Rs 14,000 crore over the next 5-6 years.

In March this year, Mahindra & Mahindra had launched its first electric car 'e2o' priced at Rs 5.96 lakh (on road Delhi, after state subsidy), almost three years after it acquired Bangalore-based electric car maker Reva.

Mahindra, who is also the President of the India Design Council (IDC) was speaking on the CII-NID Design Summit.

The India Design Council (IDC) today signed a memorandum of understanding with UK Design Council (UKDC) at the CII-NID Design Summit to facilitate cooperation between India and the UK for promotion of design in the country.

"(The MoU) will facilitate exploration of design isssues critical to India and the UK and promote exchange of ideas. It will help develop capability, increase knowledge and encourage businesses to use design," Mahindra said.

The MoU will lay focus on mutual exchanges on design policies and facilitate design promotion between India and UK.

IDC is an autonomous body setup by the Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce and Industry whereas the UK Design Council is a charity incorporated by the Royal Charter.

First Published: Wed, November 27 2013. 17:35 IST