When we talk about about electric scooter in India, we are far more disappointed with the current situation of electric two wheeler market then about 3-4 years ago. What happened actually in between, Prices and tax. two factor which is a biggest challenges now. Govt NEMP subsidy scheme actually increase the price of electric two wheeler. All electric two wheeler companies have clearly looted the govt subsidy by increasing their e scooter base prices.
What actually happened? lets talk about a Top company I wont take name, their electric scooter price was nearly 32000/- before any subsidy, When the first time subsidy launched, In a year same e scooter price increased by more then 10000/- INR and selling cost was about 37000/- after deducting subsidy. In a year price went up so much. This is where the price increasing started. Govt subsidy actually become a tool of increasing the profit. who cares about consumers. Govt stopped subsidy on Non RTO electric vehicle.
NEMP is totally failure. its didn’t cut down the cost to consumer, but what it did is clearly increased it.
Govt should make a separate board to monitors all electric vehicle companies and price control should be done. Those companies who used NEMP subsidies in their profit earning by increasing the price, should be punished. This is the time govt should wake up if it is serious about electric vehicle future.
GST Still Hurting
Now we talk about taxes, But first, we should know what is factor for electric scooter which is more important then anything, is the battery. Govt did some great work like decreasing the tax to 5% on electric scooter But electric vehicle battery still in 28% (for lead acid )and 18% (for Lithium GST) category. An electric vehicle user before purchasing the electric scooter thinks about its future, and future of its scooter is its battery which is very costly, Govt must do something to decrease the price of the electric scooter battery.
These two things if Govt consider and take action seriously, the electric two wheeler market will boom with double speed.