Andhra Pradesh government is actively seeking OEMs and financial services to offer attractive schemes to promote EV sales
The government of Andhra Pradesh has stated to be actively helping its workers purchase well over one lakh electric two-wheelers at attractive discounts with flexible financing offers to boost the availability of the zero-emission models and reduce pollution.
Said to be the world’s first initiative by the southern state, buying the electrified two-wheelers in a bulk will result in approximately Rs. 500 crore to Rs. 1,000 crore sales for the producers as a whole. In the last fiscal, the sales of electric two-wheelers were at 1,52,000 units.
With the increase in fuel prices, general public is definitely considering EVs as a better alternative as the transition towards zero-emission models is indeed taking place and it will only accelerate in the coming years. Over the next five years, the volume numbers of the EVs are estimated to grow by 25 per cent.
With the ambitious plan to phase out IC engines by 2024, the Andhra Pradesh government is offering different schemes for local and global financing and it comes on the back of the state purchasing thousands of four wheelers and trucks with electric powertrains for use across different sectors.
A plan has been devised to make the transition possible. The state government has four to five lakh employees as volunteers in village secretariats. The proposed plan would enable OEMs and financial institutions providing loans at cheaper rate of interest and thus aiding them by the electric two-wheelers at an affordable cost.
It has commenced bids from OEMs, which are expected to be received before April 10 deadline, to create a framework for monthly instalment payouts and the association with EESL (Energy Efficiency Services Limited) enables other initiatives as well. Hero MotoCorp, Kinetic, Ampere and Okinawa are amongst the interested parties.
Besides convening with global agencies like KfW and GIZ, the Andhra Pradesh government’s New and Renewable Energy Development Corporation has been looking for expressions of interest from EV makers. The OEMs and suppliers need to meet the distribution and after sales support in more than 650 mandals and over 100 municipalities across 13 districts.