Big plans for electric vehicles in India, lack of infra a challenge

Even as sales of hybrid vehicles are taking a hit under GST regime due to a high tax rate, premium auto companies are planning to launch more electric vehicles.

Under the new Goods and Services Tax regime, hybrid and luxury cars are taxed at a higher tax rate of 43 percent from the earlier 28 percent whereas pure electric cars are taxed at 12 percent.

Earlier this year, the government had stopped giving incentives to mild hybrids under the FAME India scheme. Faster Adoption and Manufacturing of Electric Vehicles (FAME), which was launched in 2015 to incentivise manufacturing of eco-friendly vehicles including hybrids.

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