Electric two-wheeler makers such as Hero Electric, Electrotherm and TI Cycles are looking to introduce new products and reduce prices. The move comes after the Centre announced subsidy for electric vehicles. The companies also plan to ramp up production capacities, dealership network and points of sale.
The electric two-wheeler player, who are under pressure due to poor sales and lack of support from the Centre, have expressed confidence that the government’s decision would help revive demand strongly and expect to do better sales in the remaining months of the current fiscal. The scheme envisages incentives of up to 20% on the ex-factory prices of the vehicles, subject to a maximum limit. The cap on the incentive will be Rs 4,000 for low speed electric two wheelers, Rs 5,000 for high speed electric two wheelers and Rs 1 lakh for an electric car.
Hero Electric CEO Sohinder Singh Gill told FE, ?The incentive scheme will act like a lifesaving drug for the electric vehicle industry.? ?The scheme will help organised players to get into more action and eliminate mere traders and distributors. We expect the demand to pick up soon and we will ramp up capacity and hope to do better in the remaining months. We will also look at export markets,? he added. Tube Investments of India MD L Ramkumar said, ?It is a major decision which will help strong revival of the industry. We hope the sales will pick up sharply. Consolidation has already taken place and those import, assemble and sell in India will gradually fold up their operations.?