Electric cars soon to get cheaper

Electric cars may become cheaper by up to Rs 1 lakh with manufacturers expected to pass on to the consumers the benefits of the Rs 95-crore incentive package extended by the Government to the industry.

The main beneficiary, however, is expected to be two-wheeler manufacturers, which have a larger consumer base. There are four-lakh electric two-wheelers on the road, with around 85,000 units being added annually. At present, the large electric two-wheeler makers include Hero Electric, Yo Bikes, Avon and BSA, though most are making losses.

In contrast, the electric car market has only one player at the moment — Mahindra Reva EV Ltd — with total sales of 3,700 units since launch in July 2001, of which 50 per cent was in the domestic market.

Others players such as car market leader Maruti Suzuki and General Motors have also been working on such technology and may now be eager to enter the segment.