Electric two-wheelers might cost us less in the near future

The Indian government is planning to introduce policies that would reduce the price of electric two wheelers in the country, so that they can be equalled to, if not made less expensive than, petrol-driven two-wheelers.

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The move is aimed at reducing pollution that the petrol-driven scooters emit from their exhaust-pipe in most polluted Indian cities, which also feature in the list of world’s most polluted cities.

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A senior official told ET that the department of heavy industries has given its approval that a four-member committee be made which would then suggest ways that could help the government increase sales of electric two-wheelers. As of now, an electric two-wheeler costs about 1.5 times that of a petrol version.

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"The idea is to bring the industry on board to implement measures which can ensure faster adoption of electric two-wheelers," the official said on condition of anonymity.

While increased sales of electric vehicles will save fossil fuel by about 2.2-2.5 million tonnes, it would also help keep a check on vehicular emissions while decreasing carbon dioxide by up to 1.5% by 2020.

The committee, while suggesting ways to make place for charging infrastructure, will also suggest steps helpful in lowering the price of batteries and components.

It was in the end of 2010 that the government had first offered a helping hand to the electric vehicle industry, when the new and renewable energy ministry announced a Rs 95-crore incentive scheme for e-vehicle manufacturers. Import duty on batteries was also brought down from 26% to 4%.

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