NEW DELHI: According to sources familiar with the latest idea, India will offer car makers nearly $3.5 billion (about Rs. 25,735 cores) in incentive over a five-year term under a modified scheme to stimulate the manufacture and exporting of clean technology cars.
The government’s original proposal was to provide carmaker and parts manufacturers around $8 billion (about Rs. 58,830 crores) to promote primarily gasoline technology, with additional incentives for Electric Vehicles (EVs).
According to Reuters, the scheme has been redesigned to focus on companies who manufacture hydrogen fuel-powered and electric automobiles.
Tata Motors is one of the India’s top seller of electric automobiles, with competitors Mahindra & Mahindra and motorcycle manufacturers TVS Motor and Hero finalizing their EV plans.
Maruti Suzuki, India’s largest carmaker, has no plans to sell electric vehicles in the near future since it does not see enough demand or affordability for consumers, according to its chairman.
The initial allotment over the five-year term has been cut, according to a government official with direct knowledge of the situation, but up to $8 billion (approximately Rs. 58,830 crores) might be made available if the initiative is successful, initial monies are spent, and certain requirements are met.