According to the recent findings from a document seen by Reuters, India plans to promote electric vehicles start with their automotive-sector scheme. Electric vehicle companies will receive an additional 2% government cashback. This is in addition to the usual 4% to 7% on eligible sale and export value for vehicles and components.
The after and before
The expected investment in five years is 14$ Billion. The country is pushing the scheme on electric vehicles, to reduce petrol and oil consumption. The petrol hike last month hit hard on consumers when the RBI governor addressed the issue. He said, “Proactive supply-side measures, particularly in enabling a calibrated unwinding of high indirect taxes on petrol and diesel – in a co-ordinated manner by center and states – are critical to contain the further build-up of cost-pressures in the economy”.
There were always such low-cost pressures in India and electric vehicle is as a potential solution. It could not only bring ease to consumers but also bring harmony between the states and the central government.
Conditions to avail the benefits of the scheme
The discussions on the approach to focus on electric vehicles started last year in June. Currently, it is expected that final decisions will be made in a month. However, by April 1st companies can apply to the scheme. There is an additional catch to avail the benefits of the scheme.
Companies should have global revenue of $1.4 Billion for carmakers, and $64 Million revenue for automotive part manufacturers. Therefore, by eliminating the smaller companies, India currently plans to focus on those companies which show promising advancement in the manufacturing and selling of Electric Vehicles.
In the end, the scope for merging start-ups with large global companies increases with the new automotive sector scheme. It allows the electric vehicle corporations to take a chance and invest in the right man-power.
Competing with Volkswagen, Ford, and India’s Tata Motors, Tesla plans to set up its manufacturing sector in Bangalore, India. Also, all these electric vehicles will strictly adhere to strict global emissions regulations.
The capital city, Delhi is the most popular in India for electric vehicles. Chief minister Arvind launched a policy to accommodate electric vehicles with ease. 1,100 charging bays in 100 locations are to be manufactured in Delhi. The policy aims to reduce pollution levels across the city.
With manufacturers focusing on creating electric vehicles, such accommodation ease encourages the use of electric vehicles. Furthermore, India’s potential raises with installing charging bays, though it is only in one city currently.