Andhra Govt To Give Tax Exemptions To Electric Vehicle Manufacturers

Hyderabad, Aug 29: | Updated: Aug 30 2003, 05:30am hrs
In what could be a move to attract other electric vehicle manufacturers besides Reva Electric Car Company, the government of Andhra Pradesh (AP) has decided to give all electric vehicle manufacturers tax exemptions in the state. The exemptions of sales tax of 12 per cent and road tax of about nine per cent will be waived on electric vehicles as they are non-polluting vehicles. The move will help to reduce health hazards caused due to air pollutions and these non-polluting vehicles is a step towards maintaining eco-friendly environment.

Backed by the support of AP government in the form of road and sales tax exemptions, Reva Electric Car Com-pany launched the electric vehicle in the state. The Reva car runs on battery and users can save upto Rs 1.6 lakh in running costs over a period of five years. The car is priced at Rs 2,40,777 (ex-showroom price) in Hyderabad.

Announcing the launch in a press meet, Mr Chetan Maini, MD of Reva Electric Car Company said the car has gained popularity in international markets too. Curre-ntly, it is being test marketed in United Kingdom, Malta, Switzerland, Norway, Nepal besides Hong Kong and China. Even in mature markets, the price of the car is relatively lower compared to other four-wheeler electric vehicles.

Following the tax exemptions of 21 per cent, the price of the car is cheaper by about Rs 40,000 compared to other states. The company has sold about 500 cars in 15 months and has a production capacity of 6,000 units in a year, Mr Maini said.

With zero-pollution mobility, the company has plans to develop newer models in various sizes as the technology is in place for giving more value-addition features in Reva which is Indias first electric vehicle.

The features of the vehicle include dent and rust proof body panels, remote control A/C, energy management systems with two on-board computer systems which monitors the performance of the car automatically corrects minor problems.