The Electric Vehicle segment has gained importance in India, as the nation is looking into altemative options of energy efficient transportation solutions. This segment has gained importance because it is an environment-friendly, non-polluting means of transport. In addition , there is hardly any maintenance cost for EV’s and spare parts are inexpensive and therefore affordable. Additionally, the Government is also proving subsidies to this segment in order to encourage more people to buy these vehicles.

Hero Electric, a 100 per cent subsidiary of the Hero Group, has been a major player in the Indian Electric Vehicle industry, With a background of extensive research in the EV segment, Hero Electric entered the Electric Vehicle segment with the single-minded objective of providing eco-friendly, cost-effective mode of personalised transportation with its range of Electric Scooters, Maxi and Optima Plus. Over a short period of time, Hero Electric has been quick in establishing itself as an undisputed leader in the Electric Two wheeler segment.

It is quite evident from Hero Electric Corporate positioning “save Money, Save the Earth” that it aims to be the best in providing economical and zero pollution transportation in the country. Mr. Naveen Munjal, Managing Director, Hero Electric and President-Society of Manufacturers of Electric Vehicles (SMEV) adds, “Electric Vehicles are the answer to problems like pollution. Dependency on fossil fuels. Thesurest way to reduce pollution within city limits is to push the sale of Electric Vehicles. The Government can give a boost to the EV Industry through subsidies and police measures on the likes of Delhi Government, which has provided a subsidy of 29.5 per cent on EVs in Delhi”. Mr Sohinder Gill, Chief Executive Officer – Hero Electric further adds, “Electric Vehicles are committed to the ecological platform. Government support is the answer to many of the challenges faced by the EV industry. The Government has initiated steps to kick-start the Electric Drive but an even more strong support is the call of the day. Incentives from the Government will help and motivate consumers to switch to electric vehicles, and in the process, help these states in their drive to be environment friendly. Hero Electric is committed to work at all levels to ensure that Electric two-wheelers get their due importance as safe, pollution free and economical mode of transport.”Hero Electric Scooters are 60 per cent cheaper then the equivalent petrol scooters on the total cost of ownership. For example, on a typical usage of 60 km per day, Hero Electric scooters saves more than Rs 12,000/- per year compared to the petrol driven scooter. Hero Electric has been a pioneer in the India EV space with lot of first only initiatives credited to its name. Hero Electric was the first EV Manufacturer to launch the concept of ‘Charging Stations’ for Electric two-wheelers in Delhi and first of its kind in India. It is the first Manufacturer to launch the Electric Bike Assistance – Door Step Service for electric two wheeler in Delhi and first of its kind in India. At present the distribution and servicing network comprises of over 260 exclusive sales and service outlets across the country and the company will be adding 100 more in the coming fiscal year.

Hero Electric has begun exploring international markets for its low-speed electric two-wheelers, even as it tests its high-speed (45 km) bike for the domestic market.

According to Mr Sohinder Gill, CEO, Hero Electric, e-bikes built for Indian road conditions would do well in Africa. There is also an opportunity in Canada and European markets where lead-acid battery-powered bikes are allowed. Newer vehicles in developed markets run on the more expensive and efficient lithium-ion batteries.

The Hero Group company hopes to sell 25,000-30,000 bikes this year, up 40 per cent from last year. Its plant has an annual capacity of 120,000 units.

Mr Gill, who also serves as the Director of Corporate Affairs for the Society of Manufacturers of Electric Vehicles (SMEV), says electric vehicles are growing at 30 per cent from its current small base. But manufacturers won’t survive without government support.

Duty structures
The SMEV wants duty structures rationalised and a 25 per cent subsidy on purchase of all electric vehicles for two to three years. “Every country has offered subsidies of 30-50 per cent during the ‘seeding’ stage of the industry,” he says. Encouraged by India’s recent commitment towards solar energy, the SMEV is banking on the Ministry of New and Renewable Energy to do something for electric vehicles too. It also wants the Government to set up rapid charging stations.

Excise duty and counterailing duty (CVD) was removed last year, but only on completely built units. “While the move was well-intended it only benefited traders importing bikes from China. The organised sector, accounting for 55 per cent of e-vehicles, continues to pay a CVD of 10 per cent on motors, batteries and control panels it imports,” says Mr Gill. The SMEV has taken the matter up with the Finance Ministry and is hoping the duties will be rectified in its favour.

It also wants the Value Added Tax reduced, in line with the Central VAT Committee Rules that call for a lower VAT on energy saving products. Over the last six months, the SMEV has managed to persuade 10 States to lower the VAT from 12.5% to 4%.

VAT on e-vehicles is zero in Uttarakhand and New Delhi. “Zero road tax and a 13 per cent subsidy in the Capital, has brought down the cost of an electric vehicle to 60 per cent of their petrol equivalent and helped sales,” says Mr Gill.

“A low-speed scooter saves Rs 12,000 a year, and is still cheaper to own even if you take into account the battery replacement cost of Rs 6,500,” he adds. Domestic battery and motor manufacturers are being persuaded to start supply but given the small volumes, they are reluctant.