The government is making appreciable efforts and striving hard for the rise of EV Industry in India.
Efforts of government to boost up EV industry in India
Recently the government reduced the GST on electric vehicles and on charging equipment or stations along with the tax deduction on the interests paid on loans.
Yes! Minister of Finance and Corporate Affairs Nirmala Sitharaman announced the tax deduction of Rs 1.5 lakh on the interest paid on loans availed for purchasing electric vehicles.
In this way, the government is making numerous efforts to boost up the EV industry in India. The main aim of the government is to achieve 7 million sales of electric and hybrid vehicles by the year 2020.
This enables India to come out of the need for national fuel and can maintain Eco-friendly transportation. Thereby we can also control the pollution levels.
In the wake of the government’s National Electric Mobility Mission Plan (NEMMP), the Indian auto industry is witnessing a worthwhile opportunity for registering double-digit growth. Not only this, if the plan will be executed successfully, the associated industries will also experience a major boost.
Difference of Prices between US and INDIA:
According to a report by Bloomberg New Energy Finance (BNEF), the annual sales of EVs will grow up to 30,000 units in 2022 from merely 2,000 units in 2017.
When compared to other countries, the average vehicle prices are relatively low in India. The average price of a new car in the US is around $30-35,000 but it is $6-7000 in India.
It is in the same in the case of motorbikes. A motorbike approximately costs $20,000 and $4 – $5000 in the US and India, respectively.
So, the auto companies have to set prices within the budget range of common man. The government must launch more policies to encourage middle-class people to switch to electric vehicles.
Need for Development of charging infrastructure:
However, a substantial power network and good charging infrastructure are required all across the country.
EV charging stations and maintenance facilities have to be set up on a wider scale. Besides these, laws should be made to make the installation of charging points in every home mandatory.
Other factors that influence the growth of the EV industry
- Most of the components such as battery cells, motors, and controllers are importing from China. The domestic manufacturers are struggling to build a strong and competitive local manufacturing base as the battery costs almost half that of vehicle.
- So, it is the peak time that India should encourage swadeshi auto component manufacturing companies by providing them financial support in certain ways.
- The youth should also get motivated to choose a career in the EV field.
- University and institutions should offer regular long-term and short-term courses in EV technology.