Indian auto makers are eyeing European markets and the US market for selling their products. This is especially true in case of electric vehicle manufacturers. The European countries are offering subsidies on the electric vehicles. Germany is offering 2500 Euros discount in exchange of an old car for a smaller car. The UK is also offering discount if the customers opt for an electric vehicle instead of a model burning fossil fuel.
Thus, Indian auto manufacturers like Reva Electric Car Company (RECC), Bajaj Auto and Tata Motors are ready to launch their electric vehicles in European countries. RECC, which is a joint venture between the Maini Group and US-based AEV, has so far exported around 1,500 electric cars to Norway, Germany, Switzerland and the UK. “About five months ago, we would not have considered the US market. Now with President Obama’s pledge to have one million electric vehicles on American roads by 2015, there’s a huge opportunity out there,” said Chetan Maini, deputy chairman & CTO, RECC.
However, the US poses stiff safety norms for electric vehicles. This makes it quite challenging for the auto manufacturers to launch models in the US. The American government including the federal government and the state governments both offer heavy subsidies to such vehicles. US incentives include tax incentives to auto manufacturers, subsidies of about $7,500 to consumers that buy these cars and financial support for research and development on such vehicles.