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Electric Car Sales Hit Rock Bottom As Subsidy End
Joint MD of Electrotherm, the Ahmedabad-based manufacturer of Yo bykes, Avinash Bhandari said: "Sales of our bikes are down by 75% in the current fiscal. We have footfalls but they are not getting converted into sales, as consumers find that the subsidy is no longer available."
Yo bykes' sales had increased two fold to nearly 80,000 in 2011-12 compared to the previous year. The company also claims that it has 25% share in the electric two-wheeler industry.
Society of Manufacturers of Electric Vehicles director Sohinder Gill claimed that withdrawal of the subsidy on Evs has resulted in the sale of no electric car being sold in the months of April and May. He added that the dropping of sales by more than 50% has made business unviable for dealers.
Gill was quoted as saying: "Close to 33% of the dealers are reverting to their earlier business and around 20% have put down shutters. It is difficult to convince them for persisting in the business. Rental and other operating expenses are high."
The union Ministry of New and Renewable Energy (MNRE) provided a cash subsidy of Rs 4,000-5,000 on electric two wheeler and of Rs one lakh on electric cars which ended on March 31, 2012. The subsidy is available to the indigenous manufacturers of electric vehicles, registered with MNRE and then passed on the consumers. Currently, Mahindra Reva is the only car registered with the MNRE.
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