In an endeavor to encourage the adoption of electric vehicles, the GST council on 27th July 2019, Saturday, decided to cut the tax rates on electric vehicles. The GST on...
Electric cars or E-cars are the future of the automobile in India. India announced the National Electric Mobility Mission Plan (NEMMP) 2020’ in 2013 to acknowledge the issues of National energy security, vehicular pollution, and growth of domestic manufacturing capabilities.
The Government of India has plans to bring the paradigm shift in the automobile industry by bringing in the use of Electric vehicles, as committed in the Paris Agreement. The Paris agreement deals with greenhouse-gas-emission mitigation, adaptation, and finance within the United Nations Framework Convention on Climate Change (UNFCCC)
It has been noticed that the government has been making strategies and working on policies for the promotion of electric automobiles.
How the Government of India is Planning to make it happen?
According to the reports published on various platforms, the government is trying to make progress by initiating the creation of a favorable system or network of interconnecting and interacting parts; in nine polluted cities having a pollution level beyond four million.
And slowly incorporate these changes in the cities with a population of one million plus. There are certainly identified corridors that are busier in relation to others such as Mumbai-Pune and Delhi-Chandigarh etc.
· Future businesses possibilities
If you are someone who is thinking of entering into a business of electric automobiles, then let us inform you that the government may throw a challenge for automakers to set up a manufacturing facility for e-vehicles, batteries, and charging infrastructure in India; according to the report published by the ET (Economic Times )in September last year.
According to the latest revelations by the government, it is found that instead of announcing the E-automobile revolution throughout India, Government is planning to start with the cities with a large sum of population and higher pollution level that has a wider range of vehicles used.
· Future plans
The Government has still not unveiled the proper guidelines or sketch for the E-automobile industry, but still, the main focus is to bring in the use of e-vehicles in place of at least one-third of the petrol and diesel vehicles by 2030.
· Charging stations
Although infrastructure for charging the electric vehicles has not been fully planned yet, however, there have been initiatives to make community charging stations at different places and further set up solar-powered charging points at the existing fuel stations in India.
Subsidies Provided/ Schemes Launched to Promote Electric Vehicles by the Government of India
· Subsidies provided by the government
In the year of 2010, Government of India announced a subsidy of Rs. 950 million in the field of an electric vehicle through the Ministry of New and Renewable Energy (MNRE)
· Benefits of the government scheme
This scheme managed to benefit the consumers by availing the benefits up to 20% on ex-factory price such as the benefit of Rs. 1,00,000 on electric cars, Rs. 4000 on two-wheelers, Rs. 5000 on high-speed two-wheelers, Rs. 4,00,000 on electric minibusses, and Rs. 60,000 on three-wheelers.
· How to take advantage of subsidies
The condition to take advantage of this subsidy, the manufacturer just needs to make sure that 30% of the components must be made in India and this scheme closed on 31 March 2002.
· Long-term plan
India is planning to have seven million electric vehicles running on the road by 2020. This scheme was announced on 12 April 2014 by the Government of India which would provide the subsidies for hybrid and electric cars.
Why the Shift to E-automobile is needed?
1. Air quality
As we all know that Air quality of India has gone to worse, which is not healthy for the people of India. And as noticed by the certified sources of the government, automobiles use has been the major cause of this lethal pollution level.
2. Global issue
At the global level, there is a necessity to limit the global warming caused by the greenhouse gas emissions; that asks us to bring a shift in the automobile industry.
3. Saving money
There is a need to bring down the over-reliance on the economy generated by the Fossil-fuel. If we take a look at the numbers, the government spent around 7,00,000 crore rupees in 2014-2015, while the amount of money assigned for the period 2017-2018 is 48,000 crores; which is comparatively lesser in relation to the earlier times.
4. Business opportunities
If India is able to work out the plan to provide the clean automobile technology and facilitate the users to believe and trust in the motive, then it may make India cater to the affordable and clean automobile technology to the whole world.
It has been noted that there has been an increased level of noise pollution in some parts of the country and we could reduce the level of noise pollution by promoting the use of electric vehicles
For more information please contact Swarit advisors.