Subsidies for Electric Cars, But Not Hybrids in India

Currently, hybrids that run on both petrol and battery attract an excise duty of 14 per cent as compared to fully electric vehicles on which the duty has been brought to zero.

Published: 27-Jun-2008

NEW DELHI -- Auto companies planning to launch hybrid cars will not get any subsidies from the Government considering the cost of the car and fuel efficiency that it offers.

A top Government official from the Ministry of New and Renewable Energy said, “We can provide incentives on research and development for hybrid cars. But we cannot offer subsidies on such cars as they are very expensive and beyond the reach of ordinary masses.”

He was talking at the sidelines of the launch of electric car Reva in the Capital. However, a range of incentives are on the platter for battery-operated vehicle makers. Three State governments are currently offering incentives on electric vehicles. The Delhi Government is offering the highest subsidy at 15 per cent on the base price of the vehicle, a 12.5 per cent exemption of VAT and refund of road tax and registration charges.

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