India to subsidise electric cars

In a bid to put more green vehicles on the roads, the Indian government is offering a subsidy to drivers purchasing a hybrid or electric car.

The government is putting aside the equivalent of just over 2 billion dollars for the scheme. As the Times of India reports, the subsidy will be a proportion of the difference between the price of a car running on fossil fuels and that of a green vehicle.

The subsidy will likely vary according to the vehicle: Fully electric vehicles are expected to receive a maximum subsidy of 35 per cent, plug-in vehicles will fetch a 25 per cent subsidy, while hybrids will be eligible for a subsidy between 15 to 25 per cent.

The government hopes that the subsidy will encourage more Indians to shift to green vehicles, which in turn would encourage automobile companies to reduce their prices, reports the Times of India.

Should the scheme be approved by cabinet, India would join a handful of other countries such as the UK, China, Germany and some states in the US and Canadian provinces that have various promotion schemes to promote electric vehicles, including subsidies and tax benefits.


Photo credit: Magnus von Koeller/Creative Commons

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