The domestic electric two-wheeler industry is banking on incentives in the budget for survival. Manufacturers of electric bikes and scooters are blaming lack of subsidies and infrastructure for poor market response for their products.
“The market right now is growing at a fairly slow pace and the exponential growth that is required in a start-up business has not happened,” said Naveen Munjal, MD, Hero Electric, the country's largest manufacturer of electric vehicles. “The slow pace is largely due to lack of consistent policies and procedures for electric vehicles. Unlike rest of the world, where a lot of incentives are given for electric and hybrid vehicles, in India we still do not have a central policy.”
In 2009-10, the industry is estimated at about 1.1 lakh vehicles with an average annual growth rate of around 30 per cent. The industry is looking at removal of inverted duty structure, rationalisation of value added tax and a central subsidy for survival.
“Electric vehicle is a national priority and the growth we have seen so far is hardly anything,” said Sohinder Gill, director, Society of Manufacturers of Electric vehicles. “If something does not happen this time, a lot of companies will exit the business.”