Hero Electric Maxi

Hero Electric Maxi

A declining world economy and falling gas prices have put Indian EV makers on the offensive. The industry has asked the Indian government for a 25% subsidy on each electric vehicle purchase for the next two to three years. The request comes as a previously hot market for electric scooters has all but disappeared.

Sohinder Gill, CEO of Hero Electric, which sells electric two-wheelers, believes government assistance is a must.  “This (industry) has to be seeded by the government by incentivizing people to buy our products,” said Gill, in an interview with the Indian Newspaper, Mint.

Indian EV companies point to other countries like the U.S. and the U.K. which already offer rebate programs to encourage consumers to buy electric. While this addresses the disparity in sticker prices between EVs and gas-powered vehicles, it does nothing to provide a widespread, reliable charging network. As a result, while EVs have gained traction with those who most often travel short distances, commuters haven't embraced them yet.

Nevertheless, according to an unnamed source at India's Ministry of New and Renewable Energy, the government will announce plans to help EV makers set up manufacturing centers after the upcoming elections. Not a moment too soon.

Source: Live Mint