Need to continue focus on green-energy vehicles

Some major companies in the automobile sector believe that the government needs to continue the policy of promoting green transportation in the upcoming interim budget to be presented by finance minister Nirmala Sitharaman. They say that apart from this, there is also a need to maintain the pace of development of the infrastructure sector.

Santosh Iyer, Managing Director and Chief Executive Officer (CEO), Mercedes-Benz India, said, ‘We estimate that capital expenditure on infrastructure sector projects will continue. The government should continue to focus on policy incentives for green transportation. This will help in rapidly increasing the acceptance of electric vehicles in the country.

Iyer said the luxury car industry contributes significantly to the country’s gross domestic product (GDP). In such a situation, this sector wants that the duty structure and GST should be harmonized on priority basis. He said that overall any kind of ‘surprises’ in the upcoming budget are unlikely.

At present, 28 percent Goods and Services Tax (GST) is levied on luxury vehicles. Additionally, there is an additional cess of 20 percent on sedans and 22 percent on SUVs. In such a situation, the total tax on these vehicles is about 50 percent.
Swapnesh R Maru, Deputy Managing Director, Toyota Kirloskar Motor, said the automakers are confident that the government will continue its efforts towards shifting the economy and transportation sector to a greener future, which is less dependent on fossil fuels. Raghupati Singhania, Chairman and Managing Director of JK Tyre and Industries, said that sustainable policies for the automobile sector will lead to the expansion of this sector.

Suman Mishra, Managing Director and CEO, Mahindra Last Mile Mobility, said that people are becoming financially empowered through inclusive income generation, electric three-wheelers and commercial vehicles. We hope to give priority to this sector through the Scheme for Adoption and Manufacturing of Electric Vehicles in India (FAME) in the Budget, he said.

PHF Leasing Ltd. Chief Executive Officer Shaly Gupta said that the government is committed to the target of net zero emissions by 2070. In such a situation, light commercial electric vehicles (ELCV) are not only providing employment but are also playing the role of solution to low emissions.

He expressed hope that the government will not only continue the subsidy support on ELCVs but will also simplify the process of their registration. Kinetic Green Founder and CEO Sulajja Firodia Motwani expressed hope that the government will continue to support electric vehicles by announcing the FAME-III scheme.