India Offers $1.4 Billion In Subsidies To Support The Domestic Electric Vehicle Industry

Posted: March 10, 2019 by oldbrew in Emissions, Energy, government, Travel

Electric Tuk Tuk [image credit:]

But India makes a point of not handing any money to people wanting to buy the more expensive EVs, as Forbes News reports. Whether they can produce enough electricity to back up their policy is not clear. The majority of their power supply is from coal, plus some diesel generators.

To encourage the growth of the electric vehicle (EV) industry in India, the government has developed a two-pronged strategy aimed at both buyers and manufacturers: $1.4 billion in subsidies are to be offered, followed by a hike on import tariffs within the next year to spur domestic companies to build the vehicles.

The new policy, which was cleared by the cabinet late last month but the details of which were not available till now, kicks in with the new financial year in April.

The scheme promises to lay out $1.4 billion in subsidies over three years for electric buses, three-wheelers, four-wheelers that are registered as commercial vehicles as well as private motorbikes and scooters.

Unlike other countries where the incentives for EVs has been focused on personal vehicles like those produced by Tesla, India, where less than four million cars are sold annually, is instead focusing on its public transport system.

Hence the primary aim of the policy on subsidies for buses and three-wheelers as well as two-wheelers, a hugely popular, and affordable, mode of transport.

While EVs are still a negligible component of the country’s current transport system, several Indian companies, including Mahindra & Mahindra, Tata Motors, Ashok Leyland among others have begun making electric cars, autorickshaws and buses (as well as two-wheelers) that run on lithium-ion batteries.

The latest policy is meant to boost that industry.

Full report here.

  1. A C Osborn says:

    Seeing how many of the two stroke tuc tuc type vehicles there are in Indian cities this is an ideal solution providing they can supply the necessary charging infrastructure.
    It would really help to clean up their city atmospheres.
    Of course it won’t do an iota of good for Climate Change.

  2. oldbrew says:

    E-rickshaws are ‘cleaning up’…

    Electric Tuk-Tuks Power EV Revolution In India

    When you think of the countries that are driving the EV revolution, you might think of China, or Norway, or — being the birthplace of Tesla and all — even the United States. One country you probably don’t think about, however, is India. You should think of India, though, because there are more than 1.5 million electric tuk-tuks on India’s roads right now.
    . . .
    “Drivers of the ubiquitous three-wheelers weaving through crowded, smoggy streets discovered that e-rickshaws are quieter, faster, cleaner and cheaper to maintain than a traditional auto rickshaw. They also are less strenuous than cycle rickshaws, which require all-day pedalling. So with more rides possible in a day, the e-rickshaws are proving more lucrative.”

  3. Saighdear says:

    Mmm… looks like a good enough idea – makes sense: Lightweight vehicles – no unnecessary weight burdens of comfort & safety devices: no great speed / acceleration requirements etc: Anyone placed orders for them in the UK? Maybe TATA’s JL will start building them – called the “Hello lander” …..

  4. Graeme No.3 says:

    Then we could have the Le Mans one hour endurance race.

  5. stpaulchuck says:

    A C Osborn says:
    March 10, 2019 at 1:18 pm

    I completely agree AC. I’ve seen the kind of auto smog prevalent in third world big cities, mostly from the ubiquitous 2-stroke engines and sick diesels. Even if it only transports the pollution to the boonies (the generation stations) where it can be diluted and destroyed naturally, it will be a big help.

    I’m in the Philippines currently. In Manila it’s mostly the mal-tuned diesel buses and trucks belching noxious semi- and unburnt combustion products into the air causing the issues. Out here in the boonies (farm country) there are literally thousands of motor-tricycles used as taxis in the small towns and cities (50,000 to 250,000 population), pumping 2-stroke fumes into the air. However, being islands, there’s mostly a fair on-shore/off-shore breeze that dilutes the mix and moves a lot of it over the ocean where it can be absorbed and destroyed. Still, I imagine there is a significant component at ground level during the height of the day’s rushing about.

    If practical electric buses could be affordably put into use throughout Asia, it would be a real winner. Then if the electric mini-taxi could be built and put to use economically in other countries than India it would be a real boon to the people breathing the exhaust products currently IMAO.

    In the US, the Tesla and the Volt are nothing but vanity vehicles. Meh. However, if we could produce viable taxis with electric motors, then places like NYC and Chicago, etc., would benefit. Worth looking into. One of the current show stoppers is the rare earth issue. If the chemists and physicists can cook up a cheap(er) substitute for them in the magnets and other parts I wager we’ll see a boom in electric vehicles. The other BIG thing is battery weight. I see papers from time to time showing significant improvement in storage. I think most if it is for the ‘green’ energy sector, but looks like application to vehicle batteries is likely too.

  6. stpaulchuck says:

    Oldbrew, of course so far it’s down to recharge times, run time, and enough places to recharge. I’m not sure that one’s big enough for NYC and Chicago use but could be scaled up.

  7. oldbrew says:

    What happened to their $1bn taxi deal?

    How Nissan’s NYC Taxi of Tomorrow has turned into a nightmare

    Game over…

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