Bumpy ride ahead for auto part makers as govt pushes for electric vehicles

ACMA, a lobby group that represents auto parts makers, is conducting a study to assess the impact of such a transition on the industry

The government of India has an ambitious plan to convert the entire vehicle fleet in the country to electric by 2030. It has also decided to tax electric vehicles at a low rate of 12 per cent under the goods and services tax, against a minimum 29 per cent tax on fuel cars.

However, the government’s push towards green vehicles has made automobile component makers cautious of their investment in current business, as they fear that the move would alter their businesses drastically.

Conventional fuel-based engines or internal combustion engines (ICE) requires several parts to work optimally. These parts include