India Wants EVs to Account For 15% Of The Total Car Sales By 2023

On September 6th, at a meeting of the Society of Indian Automobile Manufacturers, India’s ministers for transport and highways, Nitin Gadkari informed the public that Indian government has an intention of making EVs accounting for 15% of all car sold in India by 2023.

In May 2018, it was announced by the Indian government that it is targeting for 4% EVs in the total Indian cars sales by 2023, which marks a considerable rise of the current target. In March 2018, another goal was made by the government: EVs will comprise 30% of all vehicles in India by 2020.

The Indian government plans to make EVs account for 15% of the total car sale by 2023

Whatever ways adopted, it may seem overambitious for India to achieve the goal of 15% EVs by 2023, considering the fact that electric vehicles sale in India now makes up for only 1% of all car sales despite its development as one of the fastest-growing car markets recently. This unpopularity of EVs is due to the high costs of batteries which still have to be imported and a deficiency of charging stations across the country. Certain measures have been put forward by Gadkari with a view to achieving this goal.

• Firstly, road permits are not required for CNG vehicles and EVs.

• Secondly, the tax on EVs will be 12% lower under the GST and there would be no other taxes.

• Thirdly, EVs imported for testing will be nonexempt from taxes.

Furthermore, ridesharing services like Ola and Uber could also be required to have a fixed number of EVs. The initiation of programs like National E-Mobility Programme to supplement stations for car charging is also a good idea for India to encourage the sales of EVs.

The news coincides with the time period when many car producers are introducing EVs to India. For example, the testing of an electric version of the compact Wagon-R model is reported to be underway by Maruti Suzuki. Suzuki and Toyota have also cooperated with each other to release four models of hybrid or electric cars into India by 2021.

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