Major automotive manufacturers such as Tata Motors, Maruti Suzuki, and Audi India are advocating for an extension of tax benefits and subsidies for electric vehicles until the industry achieves a market penetration level of at least 15-20 percent, rather than being tied to a specific timeframe or benefit amount.
Speaking at the Autocar Professional’s India EV Conclave in collaboration with the Tamil Nadu Government, Shailesh Chandra, MD of Tata Motors, emphasized the success seen in markets like Europe and China, where subsidies were reduced only after reaching a 17-18 percent penetration level. He suggested that once India attains such a level, the government should consider withdrawing subsidies to avoid prolonged financial burdens.
The current Central Government provides a five percent Goods and Services Tax (GST) rate for electric vehicles, in contrast to the 28-55 percent tax imposed on internal combustion vehicles.
Additionally, the passenger vehicle industry benefits from Production Linked Incentive Schemes, along with state government incentives, enabling electric vehicle manufacturers to competitively price their zero-emission vehicles.
India’s government has set a goal of electrifying 30 percent of car sales by 2030. Tata Motors aims to have half of its vehicle sales equipped with electric powertrains, while Maruti Suzuki envisions 15-20 percent of the market being electric vehicles by 2030. Audi India anticipates a higher penetration in the luxury car segment due to the willingness of high-end vehicle buyers to pay a premium.
Balbir Dhillon, Head of Audi India, emphasized the importance of stable and consistent policies with a visibility of three to five years, stating that a stable regulatory environment is crucial, along with tax benefits and duties.
In addition to tax benefits, Dhillon highlighted the need for support in charging infrastructure to ensure its evolution alongside the lower tax regime.
Aditya Jairaj, Deputy MD of Stellantis India, called for a unified interface for consumers to access all charging options, check the availability and functionality of chargers, and facilitate easy payment methods.
Jairaj also stressed the importance of patience and focus on various enablers for achieving mass-market adoption, suggesting that 20-25 percent electric vehicle penetration by 2030 would be a significant success.
Did you like this post ? Give a rating :