Centre plans to prioritise electric vehicles over hybrids in 15 years
New Delhi, May 8: The Central Government is planning to change petrol/diesel vehicles to electric vehicles in the country in the next 15 years. This decision was taken in a Niti Ayog meeting called by Prime Minister Narendra Modi. The government is also considering to bring in new mobility policies in addition to transforming the vehicles to electric mode.
As part of the new policy, the government has decided to provide tax concessions to consumers and to reduce loan interest rates.
However, it is observed that it is not easy to implement the new policy that has been brought by the government in the Niti Ayog meeting. The automaker will need more money for the production of electric vehicles.
The recommendations in a draft report by Niti Aayog, the planning body headed by Prime Minister Narendra Modi, are aimed at electrifying all vehicles in the country by 2032 and will likely shape a new mobility policy, said government and industry sources.
The report’s focus solely on electric vehicles marks a shift away from the current policy that incentivises both hybrid vehicles – which combine fossil fuel and electric power – and electric cars and is worrying some automakers.
Besides, it would be a challenge that there are no enough charging stations for the electric vehicles. Currently, only Mahindra & Mahindra is producing electric vehicles in India.
Puneet Gupta, South Asia manager at consultant IHS Markit, said the government would need to lead the change with generous incentives to achieve its goal.
“This is one of the most radical changes the government is talking about,” said Gupta. “All cars being electric is a distant dream.”