Sales Of Petrol And Diesel Cars May Be Capped — Reasons Revealed

The sales of the petrol and diesel vehicles may be capped to support electric vehicles in the country. The revenue generated fro sale of conventional cars may be also used to set up charging stations

By Sukesh

The electric cars are considered as the future of automobile industry with the rise in problems such as fuel crisis and pollution due to the petrol and diesel vehicles.

Sales Of Conventional Cars May Be Capped To Boost Electric Vehicle Sales

National Institution for Transforming India (NITI Aayog), a Government of India establishment has provided recommendations which would see significant changes in automotive sales in India.

Sales Of Conventional Cars May Be Capped To Boost Electric Vehicle Sales

The NITI Aayog has submitted a 90-page report and asked the government o reduce the tax and interest rates for loans on electric vehicles. Restricting the sales of conventional cars are also part of the report.

Sales Of Conventional Cars May Be Capped To Boost Electric Vehicle Sales

The report will be available for public viewing in a next few weeks. The report also suggests using the revenue obtained from the sales of petrol and diesel cars to set up charging stations.

Sales Of Conventional Cars May Be Capped To Boost Electric Vehicle Sales

The report only focuses on electric vehicles. India aims to reduce its oil bills by 50 percent by 2030. The government is aware of the reasons behind the poor sales of electric vehicles in the country.

Sales Of Conventional Cars May Be Capped To Boost Electric Vehicle Sales

The NITI Aayog has also recommended procuring bulk electric vehicles, manufacturing standardises and swappable batteries to bring down the cost and affordable tariff structure for charging cars.

Sales Of Conventional Cars May Be Capped To Boost Electric Vehicle Sales

The report also suggests to set up battery swapping stations by 2018, a common manufacturing plant for components and increase the subsidy for electric vehicles. Another suggestion is to reduce tax and interest rates on loans for taxi fleet operators.

Sales Of Conventional Cars May Be Capped To Boost Electric Vehicle Sales

If at all the government adopts these recommendations, the Indian automakers will have to shift their investments to electric vehicles. National Electric Mobility Mission Plan (NEMMP) 2020 aims to have seven million electric and hybrid vehicle on the road.

Source: Reuters

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Article Published On: Friday, May 12, 2017, 17:10 [IST]
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