The electric vehicles industry is seeking a host of incentives including excise duty and value added tax (VAT) exemption from various state governments for the growth the sector in the country.
“We are asking the Centre to give us exemption from excise duty on the manufacture of electric two-wheelers. We have also asked various state governments to give us exemption or fix lower VAT rates,” D R Harindranath, executive director, Eko Vehicles Pvt Ltd said.
Addressing a press conference to announce the launch of Electric Global Auto Expo 2009, the first three-day expo on electric and hybrid vehicles, he said the lower VAT rates and excise duty exemptions will help the electric vehicle industry to bring down the upfront cost of vehicles. The expo is being held here from December 11-13 at Palace Grounds.
“This will help us popularise the electric two-wheelers in the country, which are environment friendly,” he said.
Presently, only Delhi government is offering a cash incentive of Rs 8,000-12,000 on electric two-wheelers and southern states including Karnataka have imposed a 4 per cent VAT rates on EVs, A Shantha Kumar, assistant manager, BSA Motors, said.
The electric vehicles industry is also working hard to introduce latest battery technologies to increase the life of the vehicles. “We are presently testing lithium ion batteries on our electric vehicles, which will enhance the life of the vehicles for longer durations,” Harindranath said.
Currently, the motor and connectors are imported from China and batteries are sourced from domestic makers. “Once we start making motors and connectors in India, we will be able to reduce the prices of electric vehicles,” he said.
The electric two-wheeler industry is estimated at 150,000 units in 2008-09, a growth of 35 per cent over the previous year. For the current year the industry is likely to maintain the same growth, Harindranath said adding that higher capacity models and some serious players will drive the growth of the industry next year. The Electric Global Auto Expo 2009 is co-sponsored by Automotive Research Association of India (ARAI), Central Institute of Road Transport (CIRT). About 15 electric two-wheeler manufacturers are participating in the expo.
