You are here: Home » Budget » Run-up » Industry
Business Standard

Budget support critical for survival, say electric vehicle makers

The industry wants the National Electric Mobility Mission Plan 2020 to be implemented at the earliest

Press Trust of India  |  New Delhi 

electric cars, Tesla

Fearing closure of business, electric vehicle makers have sought government support in the to give a boost to the sector saying the National Electric Mobility Mission Plan 2020 must be implemented at the earliest.

"For us the roll out of NEMMP 2020 is of critical importance. If it doesn't happen in this then it would be end of the road for the industry," Hero Electric CEO and Society of Manufacturers of Electric Vehicles (SMEV) Director-Corporate Affairs Sohinder Gill told PTI..

Read our full coverage on Union Budget

From over 25 players in the electric vehicle a couple of years ago, only 4-5 are left now and if the government does not come out with the plan, then even these would be forced to opt out of the segment, he added.

Although NEMMP 2020 was announced in 2013, the delay in taking concrete actions on it has severely hampered growth of electric vehicles in India.

It had envisaged the government providing support to the tune of Rs 13,000 crore to Rs 14,000 crore over a period of 5-6 years with sales projection of 6-7 million units of new units of the full range of electric vehicles.

Highlighting the importance of government support, Mahindra & Mahindra Chief Executive, Automotive Division Pravin Shah said: "We are expecting some sort of allocation in the that'll help in making the electric vehicles more affordable for consumers as the current cost is very high."

It was about taking the steps to kick-start the journey towards sustainable mobility, already there is a roadmap, he added.

Sale of electric cars in India is less than a thousand units a year and is "far from our expectations", he said.

Mahindra Reva sells its small electric car e20 in select cities in the country but the high cost has been a hindrance.

Detailing the areas where the auto wants support from Centre, Shah said: "Creation of infrastructure, such as charging stations, reducing import duties on components till the time homegrown technology is developed and providing R&D incentives are important."

He also said that asking states to take up electric mobility as a priority would go a long way in making the initiative a nationwide success.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Sun, February 15 2015. 10:50 IST