In order to promote environmental protection, the government has devised a scheme at Rs200 crore for setting up a body to regulate the automobile production on these lines. The assistance will be extended to companies which manufacture environment-friendly vehicles, it is learnt. The government is understood to have assessed the lack of infrastructure in some companies which yield electric vehicles and costly hybrid versions. Such companies are not able to witness the desired growth in their venture due to the incessant constraints, said the Joint secretary for Ministry of Heavy Industries. The propose body the National Electric Mobility Mission (NEMM) is entrusted with the responsibility of promoting such vehicles to maintain environment. The vehicles will substitute the vehicles coming under petrol and diesel version, which constitute majority volume in the Indian automobile market. The funding for this move will be from cess and from schemes of urban development mission.
The motive of the government in installing this body is to assist the automakers with technology development for curtailing the cost of batteries, thereby reducing the cost by one third of the net price. The NEMM will be constituted consisting of representatives from several ministries like Environment& Forests, Road, Transport & Highways and Science and Technology. The move comes after the failure of impact by electric versions of vehicles, which incur less fuel cost and maintenance cost. Such vehicles have been accorded with incentives on road tax and certain privileges like non-insistence on registration and licenses. The overall production of electric vehicles in India from over a dozen companies come upto 10 lakh per year. The sale however is just 10% of it including hundreds of electric cars from Reva Electric Vehicles of Bangalore. Most companies involved in making electric versions are concerned about the cost involved, which makes it double than the cost of conventional energy vehicles. Toyota and Honda are facing such constraints for their hybrid versions. The Indian auto market is too busy with sale volume witnessing a growth of 34% in cars and 27% in bikes during April-August 2010 than the corresponding period of the last
year.
In a bid to increase the market share in the Indian car market, Hyundai is taking steps to expand its production. The company is eyeing on 22% share of the net car sale in Indian market. If it happens then the net production will go to 6.7lakh units in another two years and will involve an additional investment at Chennai plant. The plant’s current capacity is 5.9 lakh units per annum. However, Hyundai has installed its third plant in China for the same reason. In the Indian plants, the company has been hit by the labor issues for a quite longer time. The CEO&MD of Hyundai India said there is a long way to meet the demand from the domestic market. The company’s current strategy is to concentrate on domestic market more than the export segment(42%). 
The Indian automobile maker Mahindra&Mahindra is extending its might to Cimino, the Sicilian Financier to wretch the Fiat SpA Termini Imerse car factory deal. The deal might envisage the latter to produce electric vehicles in its platform. The prospective deal with Reva Electric Car co will involve $602million for Cimino for erecting the plant at Termini for making electric vehicles. Cimino expressed his willingness to take over the plant quoting strong financial stability arising out of equity funds generated from the private sources.
A high range of discounts is offered by General Motors for its cars and the amount will be in the range of Rs12000 – Rs70000. This comes in contrast to the price rise invoked by certain companies, said its VP for corporate affairs. GM is on the verge of reaching the potential customers with this discount spree, he added, quoting the ensuing festival occasions. The company’s target for this FY is 1 lakh from the last year’s 69000, since it has increased the production capacity for delivering the demand. He cleared that Nano’s mass has nothing to do for his company nor the interest rates effected by RBI on loans. Claiming that the interest rate increase would affect the sale in the second half of the FY, he said GM is receiving quite good number of orders now.