Electric Vehicles In India To Get Tax Deduction/Rebate Of Up To Rs 50,000
Electric Vehicles (EVs) In India will soon become more affordable as the Indian government is planning to introduce a tax rebate of up to Rs 50,000 upon purchase. EVs sold in India will come under ‘priority sector lending’ and also have lower interest rates on loans. The government aims to strengthen the electric-vehicle market in India to 15% (of the total sales volume) in the next five years.
Speaking to ET Auto, a concerned official shared, “The idea is to give enough incentives so that the prices of electric vehicles match the current conventional internal combustion engines so that prospective buyers start giving preferences to electric vehicles over conventional vehicles.”
“This could be clubbed with waiving of road and registration taxes by states and partial or complete exemption from parking charges for electric vehicles, resulting in substantial savings for EV buyers,” he further added.
The plan will be initially implemented in select cities in phases. Furthermore, proper supporting infrastructure has to be developed beforehand in order to improve the usability of electric vehicles in India. This includes charging stations, service centres with skilled professionals; battery inventory, etc.
One of the major factors which slow down the promotion of EVs in the country is their high pricing. Prices for an electric car or a two-wheeler are over twice that of an equivalent Internal Combustion (IC) vehicle. However, loans for buying an electric automobile will be easy to avail in the near future.
In addition to this, electric-vehicle technology has not evolved to such an extent in India to outperform conventional petrol/diesel examples in terms of driving/riding range.
Recently, the Automotive Research Association of India (ARAI) shared that converting existing three-wheelers to electric is one good way to promote EVs in the country, rather than urging passenger vehicle manufacturers to make a rapid shift — here are more details.
Thoughts On Promoting Electric Vehicles In India The push towards electric mobility has become a serious concern in the past few years. In fact, data proves that there is a growing demand for electric vehicles in India; especially in urban environments prone to traffic congestions and related pollution problems.
Source: drivespark
