In India, govt aid helps carmakers go green and cheap to fight smog crisis

(planet-ark, 2 Feb 2016) Carmakers are gearing up to launch affordable hybrid and electric cars for India in the next few years, executives said, lured by government incentives for fuel-efficient vehicles as the country accelerates efforts to cut worsening air pollution.

As the industry descends on smog-bound New Delhi for India's biggest car show, starting Wednesday, foreign firms like Toyota Motor Corp will join domestic players like Tata Motors and Mahindra & Mahindra in displaying green cars designed to reel in potential buyers.

The stakes are high in one of the fastest-growing car markets in the world. While hybrid and electric cars now make up a tiny fraction of sales, new government aid worth up to $2,000 per car could help catapult green vehicles to nearly a third of a 5 million car market by 2020, IHS Automotive says.

"It is not enough to just introduce new technology in India, you have to make it relevant for the market and the buyers," said C.V. Raman, head of engineering at Maruti Suzuki India Ltd, India's top-selling carmaker.

India's rampant pollution has forced the government's hand. The Supreme Court last month ordered an overnight temporary ban on the sale of large diesel cars in New Delhi, among the world's most polluted cities.

External link

planet-ark, 2 Feb 2016: In India, govt aid helps carmakers go green and cheap to fight smog crisis