Electric Cars sales increase due to Govt subsidy

Electric cars are yet to become a trend around the world, however in India it is not a new concept, few of the auto makers roll out EVs here. However, the infrastructure for these cars such as charging equipment and other such requirements are not available. Moreover inadequate design and lack of good mileage are another reasons, while the biggest factor that hinders good sales is its cost.

It has been witnessed that the electric cars have seen a sharp downfall in last few months due to the drastic downfall in the car model prices, accrediting it to the government subsidy.

As per the industry sources Mahindra Reva, the electric car producer in India stated that the sales of Mahindra REVAi jumped three folds in last two months time. The report suggests that the electric car sales has shown growth due to the massive sop announced by the Ministry of New and Renewable Energy in November in 2010. It was revealed in the report that the total project cost Rs 95 crore, the Indian ministry has already provided 20 per cent subsidy on electric vehicles factory price maximum catering to Rs 1 lakh for cars. For that the companies have to use 30 per cent localized content.

R. Chandramouli, COO, Mahindra Reva Electric Cars said that the subsidy has helped in reducing the prices of Mahindra REVAi by Rs 75,000, which is now priced at Rs 3.5 lakh. He said that the company has observed three fold jump in its sales by rolling out 50 cars in a month after the government subsidy. The sales increased across all the outlet spread in selected cities such as Bangalore, Pune, Hyderabad, Kerala and Jaipur. The company is selling 600 cars in one year but in 2011-12 it speculates to roll out as many as 3000 cars. The auto company has requested the government to raise the yearly subsidy from 700 cars to 3000 cars. He also revealed that the auto company is expanding on its sales network. The company plans to increase its sale points by March to 30 outlets and by 2011 end it hopes to increase it to 100.

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