India’s move to popularise electric vehicles has skidded on policy flip-flop and consumer propensity to opt for the cheaper fossil fuel-driven variants.
The size of the domestic market for electric vehicles, primarily two-wheelers, has more than halved over the past two years, forcing about half a dozen manufacturers like BSA Motors, Ultra Motors, Luminous and Eco Motors to shut shop.
The number of electric two-wheelers on Indian roads plunged by 1,00,000 in five years to 4,00,000 in 2013, a drop manufacturers blame on inadequate charging support and limited speed options.
The scenario for electric four-wheelers is grimmer — only about 2,000 electric cars were sold in almost a decade. The country is home to Mahindra Reva, the world’s largest electric carmaker that can roll out 30,000 units a year. Manufacturers say lack of government incentive has added to their woes.
“We are struggling to maintain a healthy sales traction… Concerns over battery and the higher price compared to petrol or diesel vehicles have also worked against customer acceptance,” said Chetan Maini, CEO of Mahindra Reva. Demand for Reva in India has largely been stagnant — less than 500 cars sold in a year.
Bookings for electric vehicles had jumped following the announcement of a government subsidy scheme. The scheme, which offered a cash incentive of Rs 4,000-5,000 on purchase of two-wheelers and Rs 1 lakh on cars, ended in March 2012.
The scheme’s replacement — the National Electric Mobility Plan — is plagued by delays. “During the MNRE scheme, the EV industry grew and capacities were built on estimation of continuous growth.
