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| Edited By: Yuga Chaudhari |Source: DNA |Updated: Mar 18, 2018, 05:51 AM IST
With no clear government policy in place, electric vehicle (EV) manufacturers in the country are finding it difficult to survive, leave alone compete with peers churning out fossil fuel guzzlers.
Until last year, the Ministry of New & Renewable Energy (MNRE) was offering a subsidy of Rs1 lakh on electric cars and Rs4,000-5,000 on electric two-wheelers.
That scheme expired on March 31. The new national hybrid and electric vehicle mission policy announced by the finance minister in last year’s Budget and expected to be implemented this fiscal is still in the works.
Sales of EVs — as such a small number — have almost halved since then.
“Customers have suddenly disappeared from the showrooms. Dealers are finding it difficult to sustain and wanting to close down their operations. The attrition rate is very high. Dealers and manufacturers have put in lot of efforts to develop skills in the last 3-4 years,” said S Gill, CEO of Hero Eco and director of the Society of Manufacturers of Electric Vehicles (SMEV).
There are around 1,000 EV dealers across the country, together employing at least 10,000 people, according to industry estimates.
The numbers are dwindling fast, taking a toll on the manufacturers.
In fact, three of the 12 companies registered under the MNRE scheme have shut shop already even as applications of seven new players are pending approval.
Electrotherm, Hero Electric, BSA Electric and Mahindra Reva are among those still fighting it out. “Companies have hardly made any money. The capacity utilisation is down to almost 20% currently,” said Gill.
The industry fears that by the time a new policy is in place, it would have to start from scratch.
“The demand took off and died on the way,” said Gill.
With some policy support, the players easily have capitalised on the recent run-up in petroleum prices.
Reva, the only company selling indigenous four-wheelers, has, in fact, seen a semblance of sales revival during June, said R Chandaramouli, COO, Mahindra Reva & member SMEV management committee.
