Mahindra XEV 9e, MG Windsor Pro And Tata Harrier.EV To Get Up To 4.5 Lakh Cheaper In This Indian State
Subsidies have played a key role in boosting India's EV adoption and in developing the EV ecosystem here. The state of Haryana is set to reintroduce subsidies on electric vehicles priced below Rs 40 lakh. This means that models like the Mahindra BE6, XEV 9e and Tata Harrier.EV could get subsidies of up to 15%- translating to savings of up to 4.5 lakh rupees.
The Haryana Electric Vehicle Policy 2022 used to offer a 15% subsidy on electric vehicles priced between Rs 15 lakh and Rs 40 lakh. These were valid till March 2024. The state's current EV policy keeps the benefits limited to vehicles priced over Rs 40 lakh. This exempts a large section of buyers, particularly the middle class.
In a high-level review meeting with officers from his department, Industries and Commerce Minister Rao Narbir Singh proposed to reintroduce the subsidy on (sub 40 lakh) electric vehicles to 'provide relief to the middle class consumers'.
Doing so will also promote EV adoption. The minister further emphasised that the benefits of green energy and sustainable mobility should reach the common citizen for them to be meaningful. He has asked the officials to revise the framework accordingly.
The minister believes that the benefits must apply to segments which are accessed by the majority for a policy to be effective. The 15-40 lakh EV segment currently has the highest number of footfalls. The 40L+ segment is accessed mostly by people who can and don't mind spending a premium. It makes sense to incentivise the former, as doing so will bring about tangible public benefits.
The revised policy is expected to intensify its focus on electric scooters and three-wheelers. These stand extremely relevant in India's evolving EV landscape. The adoption of both has seen massive spikes in recent years, and subsidies could give them further boosts. Singh has asked officials to base the policy rework on practical relevance. No specific timeline has been announced for the revised framework.
Why The Affordable EVs Should Get More Subsidies?
Internal signals suggest that the government could come up with subsidy adjustments that lean heavily on affordable electric vehicles. This could give several electric cars and SUVs the government backing that they deserve. The Rs 15-40 lakh EV segment has posted a healthy growth in ownership volumes recently.
The state-level support has, however, been patchy. The subsidies that the revised framework claims to deliver could make the products in this segment even more desirable, eventually translating to more sales.
BE6, XEV 9e, Creta Electric, Harrier.EV- The Busiest Segment!
15-40 lakh rupees- this is, in fact, a fairly broad price spectrum. It spans over multiple EV segments, housing hot-selling all-electric models. Tata Motors, a leader in the EV game, has multiple models in this segment- Nexon.EV, Curvv.EV, and the newly launched Harrier.EV.
Mahindra is another strong player, with two hot-selling models- the BE6 and XEV 9e. The XUV 400 also continues to be offered. Hyundai Creta Electric, Kia Carens Clavis EV, MG Windsor Pro, MG ZS EV, BYD Atto3 and BYD eMAX 7 are the other EVs falling in this price range.
Many of these are already in good demand (some sell extremely well!) and have attractive price tags. Rolling out the revised framework could make them more appealing by bringing the prices down and thus packing more value into them.