Subsidies including no registration cost, discount on road tax and lesser GST rate (five per cent) on electric vehicles (EVs) should continue in States so that adoption increases, BMW Group India has said.
Some state governments had hinted at discontinuing the subsidies on electric cars in the recent past. Delhi government’s new policy may not allow subsidies on electric cars as it was only for the first 1,000 cars. It had allowed subsidy of ₹10,000 per kWh battery capacity, subject to a maximum of ₹1.5 lakh on electric cars.
Currently, 15 States offer subsidies on EVs including Assam, Andhra Pradesh, Delhi, Gujarat, Maharashtra, Meghalaya, Karnataka, Kerala, Tamil Nadu and Uttar Pradesh.
“Our ask would be that it is a newer technology and what we all want to do is just increase the volume for customers to adopt to electric. And, I think it’s in good interest for the State as well as the Centre...more people adopting electric would be good for the economy as well,” Vikram Pawah, President, BMW Group India, told businessline.
From customers’ view point, this becomes a reasonable preposition and they can adopt to EVs much quicker and that is why the suggestion that these policies be consistent, he said.
“These incentives need to be in place across the country – zero cost for registration, the GST should continue, this will allow as a country for us to develop that quicker adoption to electric, which I think is good for the country from a reliability point of view. We are self reliable in terms of fuel requirement which is electric, which is right and good for the environment as well, and I think it makes sense for people to adopt to newer technologies,” Pawah said.
According to Vahan Dashboard, from the Ministry of Road Transport and Highways, India has sold a total of around 1,500 luxury electric cars and BMW Group India leads the market with around 700 vehicles. Since its first electric car launch last year, the company has sold over 1,000 units till now. BMW Group India has five cars in its line-up of EVs including the iX1, i7, iX, i4 and Mini SE.