To curb pollution and to save fuel, Electric Vehicles were introduced. But there aren’t many options available in Indian automobile market. The Indian Government realized the need to replace existing vehicles with EVs before it is too late. Here are the announcements that the Government has made to promote Electric Vehicles.
In Budget 2.0, which took place after elections, Honorable Finance Minister Nirmala Sitharaman has announced that additional tax benefit of Rs. 1,50,000 would be given on interest paid on loan taken for purchasing Electric Vehicles.
The Government also offers FAME(Faster Adoption and Manufacturing of Elecrtic & Hybrid Vehicles in India)-II by which electric vehicles will get an incentive of Rs. 10,000 per kWh. In Budget 2019, the Government has allocated a whopping Rs. 10,000 crores for this scheme. It was announced that GST rates on purchasing Electric Vehicles would be brought down during Budget. The final confirmation was out recently after 36th GST Council meeting.
The Goods and Services Tax rate on electrical vehicles has been reduced from 12% to 5%. It was also announced that GST rate on Electric Vehicle charges and charging stations is reduced from 18% to 5%. The new rates will be applicable form 1st August, 2019. This is a welcoming decision for electric vehicle buyers and manufacturers. The council also approved exemption on hiring Electric Vehicles by local authorities.
The NITI has asked the automobile manufacturers to come up with a roadmap towards electric vehicle transition. They are planning to make all 2 wheelers under 150cc into EVs by 2025.
The existing Electric cars like Hyundai Kona Electric and upcoming cars like MG eZS can boost their sales along with Electric bikes like Aether 450 and Revolt RV 400. Would you prefer shifting to electic bike or car? Do let us know in the comments.