After the Indian Government promises incentives to the electric two wheeler dealers, the companies like Hero Electric, Electrotherm and TI Cycles decides to reduce the prices of their products so as to increase the sales. The Electric two wheeler segment in the country have been facing crucial situations with a sale of just 85,000 units a year. The industry under pressure now is working hard towards increasing the sales up to 100 percent in the approaching years. With the reduction in prices, the companies expect their sales to increase by a good number.
The scheme formed by the Indian Society of Manufacturers of Electric Vehicles declares an incentive of 20 percent over ex-showroom prices of the vehicles to the dealers of Electric two wheelers. As per the information, an incentive of Rs. 4000 is kept for the low speed electric two wheelers and Rs. 5000 for high speed vehicles. Also the government plans to provide an incentive of Rs. 60,000 for seven seater three wheelers of the country and an amount of Rs 1lakh for the electric cars.
As per the statements of the CEO of Honda Electric, Sohinder Singh Gill, it is been enquired that the incentive scheme started by the government is to prove to be the best for increasing sales of the electric two wheelers. The scheme is definitely to encourage the dealers for sales of electric vehicle. Also he said that attention is to be paid at the exports as well os these products. With this the Indian auto market also is expected to increase and gather customers demanding for the Electric vehicles.
Obviously, the decision taken is big and difficult but if successful would take the Indian Electric vehicle market to great heights. The Electric segment definitely is expected to grow with the new scheme started.