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IT'S NOT ALL DOWNHILL
Down To Earth
|March 01, 2021
Subsidies alone will not give enough push to electric vehicles in India. Policymakers and manufacturers need to work in tandem with consumers to understand their needs and identify demands
REITERATING the Centre’s commitment to facilitating adoption of electric vehicles (EVs), Union Minister of Micro, Small and Medium Enterprises Nitin Gadkari informed the Parliament on February 11, 2021 that EV regulations had already been issued to state governments. He said the Union government will also provide subsidies to 62,000 passenger EVs and 100,000 e-two-wheelers so that India transitions towards green mobility.
Subsidies and other monetary incentives like tax rebates have been at the heart of the Centre’s EV plans since inception. This is understandable, given that the average price of EVs in India is ₹12-13 lakh, nearly double that of cars (₹5-7 lakh) that run on fossil fuel. Similarly, the starting price of e-two-wheelers is ₹70,000-1.25 lakh, much more than their conventional fuel counterparts with similar features.
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