Govt. considering incentives to promote EV production

Amitabh Kant, CEO, Niti Aayog has told the media that the government would support the electric vehicle (EV) industry by giving incentives such as lower road tax. The move is likely to boost manufacturing and sales of EVs in India.

The head of the Niti Aayog said that without affecting the production of combustion vehicles, India must become a major manufacturing hub for EVs, batteries and inter-operable charging stations.

He also pointed out that by 2027-28, the cost of EV batteries will be reduced from US $ 273 per kWh to US $ 73 per kWh. After taking into consideration the demand from the Indian market, the prices should come down to US $ 60 per kWh. Furthermore, the adoption of EVs and shared vehicles could save US $ 60 billion in fuel costs by 2030.

The government of India had earlier announced its aim to reduce the country’s dependence on fossil fuels and transition to 100% electric mobility by 2030.

Source: The Economic Times