The Hindu Business Line : No subsidies for hybrids, many for electric vehicles

New Delhi, June 25 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.

Chandigarh is offering an exemption on VAT and Bangalore gave 4 per cent VAT waiver in the initial five years when the car was launched and on registration costs. So the base price of Reva is around Rs 3.5 lakh in Bangalore and Rs 2.99 lakh on the same model in Delhi.

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.

200-km target

With battery vehicles being offered incentives, Reva Electric Car Company, (RECC) plans to launch another electric car that could travel up to 200 km sometime next year. The company’s existing model offers a range of 80 km.

“We are working on a lithium iron based battery technology which can travel greater distances in the range of 100-200 km. This is expected to be launched next year,” said Mr Keith Johnston, President, European operations, REEC. The current Reva model uses lead acid batteries and covers distances up to 80 km.

Mr Chetan Maini, the company’s Chief Technology Officer, said that since the new car was still under development, it was too early to comment on the number of passengers the car would be able to accommodate or the price range.

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