Auto makers propose a short-term plan for faster adoption of e-vehicles

Top firms also press for reduction in GST on green vehicles, non-fiscal sops to promote electric mobility

Electric vehicle manufacturers in India have proposed to the government a short-term policy of putting out three million electric vehicles on Indian roads in a bid to accelerate adoption of such vehicles and end uncertainty on schemes and subsidies facing government's electric mobility mission plan.

In a meeting with officials from ministry of heavy industries and Niti AAYOG in Delhi on Tuesday, representatives from Tata Motors, M&M, Ashok Leyland and Hero MotoCorp also pressed for a reduction in GST on green vehicles and non-fiscal incentives to promote electric mobility. The government may go with most of these suggestions and likely to announce a draft policy on electric mobility by September.

"We have suggested a plan that involves having an extreme focus on a certain number of vehicles on the roads. This will automatically take care of requisite eco-system including research and development, charging infrastructure etc, said Sohinder Gill, president, Society of Manufacturers of Electric Vehicles adding that the industry doesn’t want to burden the government exchequer with its demand for subsidy.  

The day long meeting which was attended by Abhay Damle,  secretary ministry of road transport and highways,  Anil Srivastava,  adviser infrastructure and connectivity at Niti Aayog also deliberated upon the second phase of Fast Adoption and Manufacturing of Electric and (hybrid) vehicles (FAME), a government-backed scheme to incentivise electric vehicles (EVs). The scheme which was to be announced before the end of fiscal 2017-18 has been delayed by six months owing to a lack of consensus among the key stakeholders.

The industry body also suggested non fiscal means like taxing polluting diesel vehicles and using the revenue earned from the same to incentivise electric vehicles.  It also mooted reducing permit fee on electric  buses and three wheelers and reduction in goods and services on e-vehicles.