Government seeks to scale up production of electric and hybrid cars

2012 Auto Expo makes it amply clear how fast the market dynamics are changing in India. Right from the globally established hybrid cars manufacturer like Toyota Motors to the sole player in India with an expert hand in developing electric cars like Mahindra and Mahindra did try to make something big in this segment of the car industry with Toyota Prius and Mahindra Reva NXR respectively. But, the electric car manufacturers woes remain just the same, to which the Ministry of heavy industries might offer a ray of hope with its petition to the government to approve Rs 6000 crore to encourage the automobile manufacturers for developing green automobiles for better environment.

The lack of infrastructure has always been a sore point in the country. It will be nothing short of a blessing if the government approves this plea from the automobile ministry. The fund can be utilised to set up new charging stations, not to mention the new R&D facilities that will crop up to help the car manufacturers to develop the electric vehicles in a much better way. The new budget session for the next financial year 2012-2013 could tempt more car manufacturers to develop the electric vehicles with many plans from the government in the pipe-line.

·         The excise duty on the imported li-on batteries and other components could be further reduced from the present 5%

·         New electric charging stations

·         More R&D facilities.

But, the government has always offered a helping hand to encourage the automobile manufacturers to promote greener environment in India. Though, Mahindra and Mahindra is seen with developing the Reva NXR with the help of its electric car manufacturing wing Reva electric and GM India is another who has the Chevrolet Beat electric and Chevrolet Volt being at least partially developed at its Bangalore facility, the Indian government has gone far out of the way to back the car manufacturers when required after the 2011 budget.

·         It was at 2011 budget when the import costs were literally slashed off

·         The present excise duties which stand at 5% was cut down from a higher slab of 10%

·         The government has offered a mouth-watering discount on the electric cars of Rs 1 lakh.

But, these offers did not lift up the spirits of the electric car manufacturers in the country. Ironically, these unfavourable conditions did not stop the car manufacturers in the middle of the tracks one little bit. The lack of infrastructure is no exaggeration by any means, but still the OEMs find the Indian car market with huge potential to accommodate the electric vehicles going forward. Concepts to production ready models were fraught with hybrid-electric engines displayed by a variety of car manufacturers.

The Jaguar C X16, C X75, Tata Pixel concepts brings new dimensions to the Indian car market with super advanced hybrid engine technology or unbelievably lower waste gas emissions. Mahindra and Tata’s chests were broader with pride when they brought the Mahindra Verito electric, Reva NXR and Tata Manza hybrid concept for a display at the Auto Expo. Brighter future is ahead of us which partially lies in the hands of the government while the rest, it is the consumers who will have to take the risk and promote the greener environment in the country shelling out their money to realise the united dream of attaining pollution free environment.

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