The Society of Manufacturers of Electric Vehicles expects high growth in the electric vehicle market following a Rs 95 crore incentive package for the remaining part of the 11th Plan. The scheme approved by the Ministry of New and Renewable Energy will see the government provide financial incentive for each electric vehicle sold in the country during the remaining part of the 11th Plan (2010-11 and 2011-12). The scheme offers incentives of up to 20% on ex-factory prices subject to a maximum limit. The cap on the incentive will be Rs 4,000 for low speed electric two-wheelers, Rs 5,000 for high speed electric two-wheelers, Rs 60,000 for seven seater three-wheeler and Rs 1 lakh for an electric car. The scheme has been effective on 11th November, 2010.
