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Old 22nd June 2018, 09:23   #1
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Default Private EV buyers may not get cash incentives

Another flip-flop in EV policy.

Govt to scrap subsidy for private electric cars.

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now decides to give cash subsidies to electric vehicles used by shared-mobility operators such as Ola and Uber, "as their vehicles will run much more than private cars".
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Old 22nd June 2018, 09:47   #2
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Default Re: Power minister wants India to become 100% e-vehicle nation by 2030

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Originally Posted by volkman10 View Post
Another flip-flop in EV policy.

Govt to scrap subsidy for private electric cars.

This makes no sense. Government wants people to stop using petrol / diesel and says that high taxes are meant to reduce consumption, but doesn't want to promote alternatives either. While I agree that subsidies are not the solution in long term, I don't see anything being done to improve the share of electric vehicles in India. With such policy flip-flops, if India does manage to substantially increase the share of electric vehicles, it will actually be fighting against government rather than with its support.

Last edited by suhaas307 : 22nd June 2018 at 14:24. Reason: Typo: adding 'see'
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Old 22nd June 2018, 12:52   #3
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Default Re: Power minister wants India to become 100% e-vehicle nation by 2030

The price of EVs is currently high, mainly due to high battery costs for a decent (yet below par) range. The subsidy would have eased that to some extent. I think this new decision by the government, if implemented, may sound the death knell to EV adoption by most private individuals till costs get comparable with the petrol/diesel ones.
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Old 22nd June 2018, 14:31   #4
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Default Re: Power minister wants India to become 100% e-vehicle nation by 2030

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Originally Posted by volkman10 View Post
Another flip-flop in EV policy.
Govt to scrap subsidy for private electric cars.
Link
Quote:
Originally Posted by ksameer1234 View Post
This makes no sense. Government wants people to stop using petrol / diesel and says that high taxes are meant to reduce consumption, but doesn't want to promote alternatives either. While I agree that subsidies are not the solution in long term, I don't anything being done to improve the share of electric vehicles in India. With such policy flip-flops, if India does manage to substantially increase the share of electric vehicles, it will actually be fighting against government rather than with its support.
High taxes were never there to reduce or control petrol/diesel consumption. Here is a statement from Shri Arun Jaitley a few days ago stating "Cuts in fuel prices can push India into debt trap".

With no subsidy, people would obviously stick to highly taxed petrol/diesel fuel vehicles. Pardon me for thinking on not so positive track, but Government needs revenue and it may want to continue selling petrol/diesel with high tax for as much time as they could by scraping subsidy for private EV. Not an exciting situation. Am hoping that electricity rates aren't jacked up after EV makes their inroads to replace petrol/diesel powered cars.

On another note, 50,000 litres of diesel is burnt every hour for power backup in Gurugram; it depicts a not so rosy scenario for EV. If one is not getting electricity for even running A/C at home (which has become a necessity amidst such high ambient temperatures), an individual wont be rushing to get an EV. Petrol/diesel powered cars are here to stay for a while and market wont be skewed for EV, and probably government needs it to be that way to milk the tax revenue from oil product sales.

What worries me more : Government might put additional tax on petrol/diesel cars under the pretext of deterring sales while holding an iron fist over EV policy. Double whammy for customers then.

Last edited by aaggoswami : 22nd June 2018 at 14:39.
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Old 22nd June 2018, 16:20   #5
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Default Re: Power minister wants India to become 100% e-vehicle nation by 2030

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Originally Posted by Bh.P View Post
The price of EVs is currently high, mainly due to high battery costs for a decent (yet below par) range. The subsidy would have eased that to some extent. I think this new decision by the government, if implemented, may sound the death knell to EV adoption by most private individuals till costs get comparable with the petrol/diesel ones.

All they have to do is remove the tax, currently batteries are taxed at 28% IGST and also get 12% GST on the entire vehicle.


The so call subsidy is just giving back the loot.
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Old 22nd June 2018, 18:36   #6
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Default Re: Power minister wants India to become 100% e-vehicle nation by 2030

OT, but since you raised this point:

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Originally Posted by aim120 View Post
currently batteries are taxed at 28% IGST and also get 12% GST on the entire vehicle.
Do you mean the batteries are taxed twice? If yes, are you sure? I thought manufacturers can claim input credit for the GST they pay on the components. So, if they have paid 28% on the battery, that will be deducted from the GST of the whole car, so there is no double taxation? Else, all components get double taxed.
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Old 22nd June 2018, 18:50   #7
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Default Re: Power minister wants India to become 100% e-vehicle nation by 2030

I am not entirely sure, but the IGST is the custom duties, for eg earlier there was customs duties on anything imported to india by the distributor/company which imported it and when the end user purchased it, VAT was added.

Here is a article which throws some light
https://auto.economictimes.indiatime...ption/62648985

For products made in india there was exide duty+VAT which is now replaced by GST.

Last edited by aim120 : 22nd June 2018 at 19:00.
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Old 22nd June 2018, 19:40   #8
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As far as I know, IGST deals with anything that is exported, imported and between interstates! Customs duty is not done away and still there based on assessable value defined by local bodies, Mostly on batteries both IGST and customs duty must have been applied.
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Old 25th June 2018, 16:24   #9
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Default Re: Private EV buyers may not get cash incentives

Private EV buyers may not get cash incentives - Posts moved to a new thread.
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Old 25th June 2018, 16:33   #10
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Default Re: Private EV buyers may not get cash incentives

Fair enough! but then price of the vehicles has to be brought down. Currently they are priced high, and looking at long term costs like battery replacement etc. at say end of 6-7 years, makes the purchase of such vehicle financially nonviable for normal individuals. If Govt is serious about promoting, they need to be more proactive and innovative in their approach.

As far as public transport debate goes, it is going to take 10-15 years for any reasonable change to the situation at ground in cities like Bangalore.

One thing is very clear, the policy makers of our country has no clue how to implement or drive such initiatives, someone at the top comes up with an idea (most often copied from elsewhere), which is royally messed up by the time it is rolled out or implemented.
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Old 29th June 2018, 14:46   #11
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Default Re: Private EV buyers may not get cash incentives

Putting the 2 current EV threads in perspective here:

According to the government, their offficials (who are often chauffered, and possibly goto atleast couple of predictable destinations and can very well get charging infrastructure setup - in public money ofcourse) can reject EVs for range.

Whereas, cab aggregators who have unpredictable destinations gets incentives and 'can live' with range limitations.

But hey, private EV owners don't deserve any incentives nor do they deserve complain about the range.

You see the irony here

Last edited by narayans80 : 29th June 2018 at 14:48.
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