The recent corporate tax cuts are expected to accelerate local production of Electric Vehicles and incentivise foreign EV manufacturers to setup production in India.
Crux of the Matter
Finance Minister N Sitharaman had recently announced that taxes will be slashed from 25% to 15% for new Indian manufacturing companies.
The union government also plans to accelerate Electric Vehicle and Hybrid Vehicle production and adoption in India with an allottment of Rs 10,000 crore.
Further income tax rebates upto Rs 2.5 lakh have been proposed for buyers of EVs.
Industry experts expect these slew of moves to boost ‘Make in India’ production for not just Electric Vehicles but also electric components of cars, Lithium Ion batteries and charging components.
Curiopedia
Electric Vehicle Industry in India – India unveiled the ‘National Electric Mobility Mission Plan (NEMMP) 2020’ in 2013 to address the issues of National energy security, vehicular pollution and growth of domestic manufacturing capabilities. Reiterating its commitment to the Paris Agreement, the Government of India has plans to make a major shift to electric vehicles by 2030. Indian car manufacturers like Reva, Mahindra and Tata, e-commerce companies, and Indian taxi-aggregators like Ola are working on making electric cars more common over the next two decades. Energy Efficiency Services Limited (EESL), a joint venture of PSU’s of Ministry of Power, Govt. of India is leading the procurement and sale of Electric Vehicles in India. More Info
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