Key Points
According toBusiness Today, the government will lower import taxes on certain electric vehicles for companies that commit to at least $500 million in investment.This is in addition torequirementsto have25 per centDomestic Value Addition (DVA) inyear threeand 50 per cent DVA in yearfive thatwould allow the investing company to import 40,000 vehicles (at a customs value of $35,000 or less) at the rate of 8,000vehiclesper year for five years..
And I seriously doubt that the government will open this scheme up for Chinese manufacturers either, the Government Affairs and Policy honcho of a leadingcar manufacturing company toldme.Incidentally, the leading Chinese carmaker Shanghai Automotive Industrial Corporation (SAIC), which sells cars under theMG Motorsbrand in India,announceda joint venture with the Sajjan Jindal-led JSW Group, which will focus on new energy vehicles (NEVs) including battery-electrics and hybrids...
When the Government of India introduced the FAME(Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles in India)scheme, Maruti-Suzuki introducedthe mild hybrid technology on the Ciaz and Ertiga..
Speaking to those who own other hybrids such as the Innova or Grand Vitara, they are equally astounded by the vehicles efficiency.However,to maximise the additional investment, giventhecurrent prices of petrol in India, a hybrid would need tobedriven 15,000 kilometresa year for five years..
Gadkaris comment on a GST reduction is welcome because if the objectiveis to cutfuel imports and carbon emissions, hybrids are a more cost-effective solutionthan EVs.I repeat, I have nothing against EVs; I really enjoyed driving the Hyundai IONIQ5 as my long-term vehicle until recently.I alsofound the TataPunch EVto be a fantastic vehicle, but even at reduced GST rates, these carsare expensive.EVswill dominate the private two-wheeler and commercial three/four-wheelermarket, but intheprivate four-wheelersegment, hybrid technology will be a great, cost-effective solution, despite a more complicated manufacturing process...
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