Government to give incentives to boost electric vehicles

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The government would support built-up and selling of electric vehicles (EVs) by giving encouragements such as lower road taxes so that the automobile sector continues to play a chief role in India’s GDP and job creation, Niti Aayog CEO Amitabh Kant said today. He said in the long run, India must become a major manufacturer of cars, batteries and interoperable charging stations, and help decrease pollution in cities. This, he said, should be done in a manner that does not disrupt combustion vehicle manufacturing.

“We would like to support electric vehicles by delivering huge range of initiatives such as lower road taxes. And the government will act as a catalyst so that automobile sector continues to play a major role in India’s GDP and job creation as well as in exports,” he said at an event organized by industry body ASSOCHAM. Kant highlighted that automobiles along with the automobile component industry is one of the key drivers of India’s economic growth, which contributes around 7.2 per cent to the GDP. Based on study reports, by 2027-28, the cost of EV battery will come down from $273 per kilowatt hour to $73 per kilowatt hour. Kant added, “If you take Indian demand into consideration, then it will come down to $60 per kilowatt hour.”

Kant pointed out that today car along with automobile element industry is one of the key drivers of India’s economic development, contributing 7.2 % to the GDP. Citing several studies, Kant said by 2027-28, the cost of EV battery will come down from USD 273 per kWh to USD 73 per kWh even without taking Indian demand into consideration.

“If you take Indian demand into consideration, then it will come down to USD 60 per kWh,” he noted. NITI Aayog in a recent report had estimated that accelerated adoption of electric and shared vehicles could save USD 60 billion in diesel and petrol costs by 2030. According to Piyush Goyal, who held power portfolio till recently, India aims to become 100 % e-vehicle nation by 2030.

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