Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Odisha government is likely to provide subsidies on Electric Vehicles (EVs) in a bid to increase sales, according to reports. 


The proposal, sent to the State Cabinet by the Transport Department, is likely to be approved soon. 


According to the proposal, a 15pc subsidy will be provided for buying two-wheelers up to a subsidy of Rs5,000. Three-wheelers and four-wheelers will be given a maximum subsidy of Rs12,000 and Rs100,000, respectively. EV buyers would also be exempted from paying vehicle registration fees and road tax. 


Additionally, the proposal also states, government employees will be given interest-free loans for the purchase of EVs, and subsidized parking facilities will also be given to EV owners.


The State government has planned to generate an investment of Rs150bn in the manufacturing of EVs and its components, including batteries, charging infrastructure and other equipment. 


With the festive season ahead, demand for the auto sector is likely to increase. The surge in petrol and diesel prices has also pushed consumers to EVs. 


The Odisha government is hopeful, that the introduction of such subsidies could lead to a shift in demand for EVs which in turn would increase production and demand for metals and other raw materials. The electrification of vehicles has already boosted demand for copper and nickel. 


Leave a Reply

Your email address will not be published.