The Indian government will establish a new organization with a budget of 2 billion rupees, or 33.2 million euros to promote environmentally sustainable technologies for hybrid and electric vehicles. The National Electric Mobility Mission will seek to improve the penetration of hybrid and electric car market and the Indian two-wheel vehicles dominated by fossil fuel which would at the same time improving air quality Indian cities.

According to Ambuj Sharma Secretary to the Minister for heavy industries, many alternatives are already available in the Indian market but the lack of specific facilities (load point) and for the increased purchase of hybrid vehicles hinder their development in India despite tax incentive policies.

The industry of electric two-wheelers in India which has more than 36 players at a production capacity of 1 million units per year but the annual sales amount to no more than 100,000 units. The company Mahindra Reva Electric Vehicles based in Bangalore has only sold a few hundred units in the Indian market, but hybrids have a purchase cost twice as much as conventional vehicles. Toyota and Honda who tried to disseminate their models in the Indian market have hardly sold a hundred units.

The mission of the National Electric Mobility will bring together representatives from various ministries of Roads, Ministry of Science and Technology to provide a comprehensive and cross to the problems of market development for environment friendly vehicles.

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