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Govt Promises Higher Incentives To Make EVs Popular

Published On Dec 01, 2017 05:33 PM By Dhruv Attri for Mahindra e2o Plus

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Nitin Gadkari, the road transport minister has hinted towards more concessions on EVs in the future

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The electric vehicle segment in India still offers limited options despite considerable concessions on battery-powered cars against the ones running on petrol and diesel. But the future looks a lot more hopeful with several international and indigenous manufacturers set to produce EVs as soon as 2018.

The icing on the cake is that Niti Aayog is planning to submit a cabinet proposal which after approval will lead to higher concessions on electric vehicles thereby promoting EV adoption, Minister of Road Transport and Highways of India, Nitin Gadkari revealed in an interview with News18. He also said that the policies are under consideration and will definitely favour early movers in the industry if they look carefully.

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But Indian consumers, with their diverse needs, require a lot more than just monetary incentives. Majority of Indian households run a single car and might be left wanting as and when their EV runs out of juice given the fact that we still lack any quick charging infrastructure. To cushion these impacts, the Government can take a cue from the countries where EV adoption is happening at a higher rate.

  • For starters, charging minimal or no toll tax from EV users can be a big step forward because most EV users will refrain from charting on highway journeys. Only those who reside near highways will make such journeys.

  • Moreover, rebate on registration from the Government should also result in the higher adoption of EVs as more and more conventional buyers would begin contemplating their requirements and considering electric automobiles for the same.

  • Insuring EVs is an expensive proposition because they require specialists to repair and advanced diagnostics to find faults in, in case of damage, which increases the cost of repairs further. But giving some incentives on insurance might provide a much-needed boost to EV sales for the time being.

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