Union Budget: Why should Electric and Hybrid Cars get more subsidies?

Our fossil fuel sources are limited and depleting quickly. Petrol and diesel will eventually get all used up. Atop this are concerns regarding burning exhaust gases and particulate matter from vehicles adding to air pollution. Considering all these factors, the recent focus has shifted towards the use of alternative fuel sources for mobility. India still falls short in terms of awareness though. A number of options are at hand, Electric Vehicles, Hybrid technology and Hydrogen fuel cells. Hydrogen fuel cell powered vehicles are the most sensible source, but unfortunately it will take years to install the infrastructure in place. Hybrids and electric cars are the only clever option, however due to the complexities of engine construction they cost a fortune.

Why should you consider buying an electric or hybrid car?

The most obvious solution, after considering Hydrogen fuel cell vehicles, is Electric and Hybrid cars. Hybrids use a normal engine coupled with an electric motor while electric cars have batteries powering them. Hybrids shuffle between the fuel powered engine and batteries for propulsion. Hybrids cost more as they have two engines under the bonnet. Electric cars are a bit simpler to manufacture. Plug and electric car in your house’s power socket; let it charge for 4-5hours, and off you go. Electric cars produce no emission at all, just charge and use it as your mobile phone or laptop. And then there is the simplicity of the engine, just an electric motor powered by batteries. You don’t even have to spend on maintenance as electric cars do not ask for regular service.  Just a routine check up which can be done at home would suffice. Another advantage is the noiseless operation of EVs. This means the surroundings are quieter. Imagine a city running on electric and hybrid cars, quiet and healthy surroundings for your children to thrive in.

What is available in the market for you?

Hybrid cars suffered in terms of sales as they cost a lot of money. Currently the market offers you the Toyota Camry Hybrid and Toyota Prius, both of which cost upwards of Rs 20lakh. On the electric front, Mahindra Reva is the name we come across as the only affordable electric car available in the country. The Reva went on sale in India in 2001. It was a tiny thing with cramped interiors and a stated range of 80km. Mahindra fixed the issues with their EV and launched the e2o in the year 2013. The Delhi government grants a 29 percent subsidy on the Mahindra e2o which brings the cost to Rs 5.96lakh (ex showroom). It might seem a lot of money for a small hatchback, but actually is a bargain.

How can the upcoming budget support hybrid and electric vehicles?

This is where the Government steps in and eases the burden off manufacturers and push greener cars on the road. Mandatory clauses are required in the upcoming budget to offer subsidies on hybrid and electric cars otherwise it becomes a big burden on manufacturers to offer green cars. Toyota and Honda bought in their hybrid cars in India, but because of high taxes on imports the prices were beyond reach of an average customer. The Honda Civic Hybrid could barely rack up sales, even after heavy stock clearance discounts, and subsequently was taken off the shelves. Toyota’s Prius and Camry Hybrid are also not picking up sales. On the electric front, the Mahindra Reva e2o still cannot be called a success.

What the Modi Government could do is ease off the taxation on hybrid and electric vehicles. Another area where support is required is the infrastructure in the shape of charging and quick charging stations. With the pricing of diesel and petrol going up constantly, it makes it all the more important for electric and hybrids to come into the picture. Besides Mahindra and Toyota, other optimistic manufacturers like Nissan have again shown their interest to bring the Leaf into India. The increasing use of diesel vehicles has also risen up the air pollution across all major metropolitan cities. The extensive use of hybrids and electrics would greatly help reduce the air pollution damage. What do you get as an end consumer? Cleaner atmosphere for you and your family, quieter streets, more fuel efficiency and lesser maintenance costs. Happy driving!!

Let us know what you think about Hybrids and electric vehicles. Feel free to express your thoughts in the comment section below.