India's electric two-wheeler industry struggling

Despite the growth of India’s two-wheeler industry, the electric two-wheeler segment is struggling to survive. The number of industry players is down to 10, from 60. Volume is down 15% to 85,000 units last year. In India, Delhi is the only State offering subsidy for electric two-wheelers. No wonder, Delhi is the only promising market for electric vehicles, said Sohinder Gill, chief executive officer of Hero Electric. Delhi, including the subsidy on the base price and a VAT waiver, provides a 24% subsidy. The price of electric two-wheelers in India ranges from Rs25,000-Rs 40,000 (US$537-US$859), depending on the brand and performance. According to the manufacturers, the operating cost of battery run two-wheelers is one-tenth of the gasoline-powered variants. ( August 29, 2010)