India’s green car plan prioritizes electric vehicles over hybrids
India’s most influential government think-tank has recommended lowering taxes and interest rates for loans on electric vehicles, while capping sales of conventional cars, signaling a dramatic shift in policy in one of the world’s fastest growing auto markets.
A draft of the 90-page blueprint, seen by Reuters, also suggests the government opens a battery plant by the end of 2018 and uses tax revenues from the sale of petrol and diesel vehicles to set up charging stations for electric vehicles.
The recommendations in a draft report by Niti Aayog, the planning body headed by Prime Minister Narendra Modi, are aimed at electrifying all vehicles in the country by 2032 and will likely shape a new mobility policy, said government and industry sources.
The report’s focus solely on electric vehicles marks a shift away from the current policy that incentivises both hybrid vehicles – which combine fossil fuel and electric power – and electric cars, and is worrying some automakers.