In the last week meeting of the executive body of SMEV, it has agreed to propose a formula to the government under which importance is given to the Central Motor Vehicles Rule (CMVR) certified speed and range of an EV to arrive at a subsidy factor.
In a recent report, PTI has stated that EV makers body SMEV has announced linking of certified efficiency parameters of speed and range to government subsidies instead of the current proposal of battery capacity-based support.
The Society of Manufacturers of Electric Vehicles (SMEV) said the existing proposal of the government is neither beneficial for consumer nor good for the country as it does not factor efficiency of EVs.
SMEV Director General Sohinder Gill said to PTI that this directly translates into higher subsidies for EVs that consume least amount of batteries to give higher performance. The subsidies under this formula will discourage EVs with poor performance and high electricity consumption, he added.
Citing example, SMEV said an electric scooter that goes at 70km/hr with a range of 80km will get double the subsidy of an electric scooter that goes at 25km/hr with a range of 70 km.
Under the FAME-II scheme, Department of Heavy Industries had proposed uniform incentive of Rs 10,000 per KWH for all vehicles except buses at Rs 20,000 per KWH. In two-wheelers, only high speed vehicles were proposed to be supported with demand incentives.
The phase two of the scheme for promoting EVs and eco-friendly zero emission vehicles in India is yet to be cleared by the Cabinet but it is expected to be taken up in the coming weeks. Gill however said the proposal of the government is neither beneficial for the consumer nor good for the country as it does not factor the efficiency of the EV.
