Adoption of electric vehicles all around the world is increasing, not only the customers but governments also want to shift from gasoline powered vehicles to electric powered vehicles. Recently we have read that how world’s most populated country china is encouraging and helping electric brands to manufacture and sell vehicles in their market and now the second most populated country India also taking some solid steps to encourage Indian community for buying electric vehicles instead of gasoline powered vehicles .
To increase adoption of electric vehicles Indian government is considering a proposal to impose and increase tax rates on gasoline and diesel powered vehicles, this move will promote EV’S as well save the government from extra financial burden. This move will surely impact the traditional cars sale, as this will discourage customers from buying gasoline and diesel powered vehicles.
But another problem present in Indian market is the absence of EV’S manufacturing brands and infrastructure required for charging of electric vehicles and according to our prediction it will take not less than two more years to implement.
A detailed email sent to finance minister didn’t get any reply yet and existing auto manufacturers declined to comment on it however the rival group considered it as a good step.
Sohinder gill director corporate affairs society of manufacturers of electric vehicles said;
“The government is cash-strapped to offer subsidies; customer will only get drawn towards EV’S when the prices become equal to an ICE (internal combustion engine) vehicle, so this move makes sense.
He further added;
Increase in taxes to the tune of hundred basic points on traditional vehicles will fetch a huge amount, which can provide subsidy for the first one million electric vehicles.
Avik challopadhay a founder of brand consultancy firm expereal considered it an aggressive move,
“Saying that a separate fund should be allocated for promotion of alternative fuels, the burden should not be shifted to buyers of conventional vehicles.
He added further;
The implementation of the second phase of the FAME scheme has already been postponed thrice and the new scheme is expected to be in place before this September. The scheme was introduce in 2015 to promote the manufacturing, development and sales of EV’S in the domestic market.