Govt To Revamp Scheme To Incentivize EVs and Hydrogen-Fuel Vehicles: Report

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This, as per one of the sources, is because “the government does not want to spend money on promoting old technologies”

The government has significantly changed its scheme to incentivise automakers who would locally manufacture automobiles and their components to now incentivising companies to build electric and hydrogen fuel-powered vehicles, a Reuters’ report revealed.

As per sources of the publication, India’s proposed $8 billion scheme for the auto sector to build mainly gasoline vehicles and their components for domestic sale and export, with some added benefit for electric vehicles (EVs), will focus entirely on EVs and hydrogen-fuel vehicles.

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This, as per one of the sources, is because “the government does not want to spend money on promoting old technologies.”

Auto parts makers, however, will get incentives to produce components for clean cars as well as for investing in safety-related parts and other advanced technologies like sensors and radars used in connected cars, automatic transmission, cruise control and other electronics, the sources said.

“The idea is to promote the development of technology that is currently not manufactured in India but is imported either because regulation demands it or customers want those features in their cars,” said the second source.

The sources said the original incentive outlay of about $8 billion may also be cut and that the production-linked scheme, which would apply on domestic sales and exports, could be finalised as soon as September end.

This development comes in the backdrop of the hum-drum caused by EV giant Tesla’s CEO Elon Musk, who has made known his displeasure over the high import duties levied by the government.

While reports have been flying around that the government may consider a duty cut, it also made clear that it would much rather have the EV major locally manufacturing its flagship vehicles.

Domestic automaker Tata Motors is currently the largest seller of electric cars in India with rival Mahindra & Mahindra as well as motor-bike companies TVS Motor and Hero MotoCorp firming up their EV plans.

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