Special: India s green car plan prioritizes electrical vehicles over hybrids, Reuters
Special: India's green car plan prioritizes electrical vehicles over hybrids
Fresh DELHI (Reuters) – India`s most influential government think-tank has recommended lowering taxes and interest rates for loans on electrical vehicles, while capping sales of conventional cars, signaling a dramatic shift in policy in one of the world`s fastest growing auto markets.
A draft of the 90-page blueprint, seen by Reuters, also suggests the government opens a battery plant by the end of two thousand eighteen and uses tax revenues from the sale of petrol and diesel vehicles to set up charging stations for electrical vehicles.
The recommendations in a draft report by Niti Aayog, the planning figure headed by Prime Minister Narendra Modi, are aimed at electrifying all vehicles in the country by two thousand thirty two and will likely form a fresh mobility policy, said government and industry sources.
The report`s concentrate solely on electrified vehicles marks a shift away from the current policy that incentivises both hybrid vehicles – which combine fossil fuel and electrical power – and electrical cars, and is worrying some automakers.
«India`s potential to create a fresh mobility paradigm that is collective, electrified and connected could have a significant influence domestically and globally,» said a draft version of the report, titled Transformative Mobility Solutions for India, which will be made public this week.
India`s plan to leapfrog hybrid technology comes after China announced aggressive measures last year to shove sales of plug-in vehicles including subsidies, research funding and rules designed to discourage fossil-fuel cars in big cities.
It would also mark a radical response by India as it looks to cut its oil import bill to half by two thousand thirty and reduce emissions as part of its commitment to the Paris climate treaty.
Officials acknowledge the blueprint faces challenges. High battery costs would thrust up car prices and a lack of charging stations and other infrastructure means car makers, who have been consulted on the proposals ahead of publication, would hesitate to make the necessary investment in the technology.
«If we accelerate electrical vehicle growth it will be a disruption for the auto sector and would require investment, but if we`re not able to adapt quickly we risk being net importers of batteries,» said a government source involved in the plans. «There has been resistance from car makers.»
India`s top-selling carmaker Maruti Suzuki has invested in so-called mild-hybrid technology, which makes less use of electrified power than utter hybrids, while Toyota Motor Corp sells its luxury hybrid Camry sedan in the country.
Mahindra & Mahindra is the only manufacturer of electrical vehicles in India.
SHIFT IN POLICY
India, in 2015, launched a scheme called Quicker Adoption and Manufacturing of Hybrid and Electrical Vehicles under which it suggested incentives for clean fuel technology cars to boost their sales to up to seven million vehicles by 2020.
Despite incentives as high as 140,000 rupees ($Two,175) on some cars the scheme has made little progress, with the sales of electrical and hybrid cars making up only a fraction of the three million passenger vehicles sold in India in 2016.
The scheme, which expired on March 31, has now been extended by six months while future policy is worked out, two government officials said. Lack of clarity on policy risks delaying investment in the auto sector, one official added.
The fresh Niti Aayog report, co-produced with U.S. consultancy Rocky Mountain Institute, outlines a 15-year plan, cracked into three phases embarking in 2017.
«Limit registration of conventional vehicles through public lotteries and complement that with preferential registration for electrical vehicles, similar to that in China,» the report said, in one of its most radical proposals.
To kick-start the shift, the report suggests bulk procurement of electrical vehicles, building standardized, swappable batteries for two- and three-wheelers to bring down their cost and having favorable tariff structures for charging cars.
«Prioritize battery and charging infrastructure development,» the report states, while setting a two thousand eighteen objective for setting up a two hundred fifty megawatt per hour battery plant with an aim to reach one gigawatt of production by 2020.
It also recommends setting up battery exchanging stations by 2018, common manufacturing facilities for components and enlargening subsidies on all battery electrified vehicles to bring them to cost parity with conventional models by 2025.
Other suggestions in the blueprint include incentivising the use of electrified cars as taxis by lowering taxes, interest rates on loans for purchases and electrical play tariffs for fleet operators, and lowering duties on makers of such fleet cars.
Puneet Gupta, South Asia manager at consultant IHS Markit, said the government would need to lead the switch with generous incentives to achieve its objective.
«This is one of the most radical switches the government is talking about,» said Gupta. «All cars being electrical is a distant fantasy.»
Reporting by Aditi Shah; Editing by Euan Rocha and Alex Richardson
Sensational: India s green car plan prioritizes electrified vehicles over hybrids, Reuters
Special: India's green car plan prioritizes electrical vehicles over hybrids
Fresh DELHI (Reuters) – India`s most influential government think-tank has recommended lowering taxes and interest rates for loans on electrical vehicles, while capping sales of conventional cars, signaling a dramatic shift in policy in one of the world`s fastest growing auto markets.
A draft of the 90-page blueprint, seen by Reuters, also suggests the government opens a battery plant by the end of two thousand eighteen and uses tax revenues from the sale of petrol and diesel vehicles to set up charging stations for electrified vehicles.
The recommendations in a draft report by Niti Aayog, the planning assets headed by Prime Minister Narendra Modi, are aimed at electrifying all vehicles in the country by two thousand thirty two and will likely form a fresh mobility policy, said government and industry sources.
The report`s concentrate solely on electrified vehicles marks a shift away from the current policy that incentivises both hybrid vehicles – which combine fossil fuel and electrified power – and electrical cars, and is worrying some automakers.
«India`s potential to create a fresh mobility paradigm that is collective, electrified and connected could have a significant influence domestically and globally,» said a draft version of the report, titled Transformative Mobility Solutions for India, which will be made public this week.
India`s plan to leapfrog hybrid technology comes after China announced aggressive measures last year to shove sales of plug-in vehicles including subsidies, research funding and rules designed to discourage fossil-fuel cars in big cities.
It would also mark a radical response by India as it looks to cut its oil import bill to half by two thousand thirty and reduce emissions as part of its commitment to the Paris climate treaty.
Officials acknowledge the blueprint faces challenges. High battery costs would thrust up car prices and a lack of charging stations and other infrastructure means car makers, who have been consulted on the proposals ahead of publication, would hesitate to make the necessary investment in the technology.
«If we accelerate electrical vehicle growth it will be a disruption for the auto sector and would require investment, but if we`re not able to adapt quickly we risk being net importers of batteries,» said a government source involved in the plans. «There has been resistance from car makers.»
India`s top-selling carmaker Maruti Suzuki has invested in so-called mild-hybrid technology, which makes less use of electrical power than utter hybrids, while Toyota Motor Corp sells its luxury hybrid Camry sedan in the country.
Mahindra & Mahindra is the only manufacturer of electrified vehicles in India.
SHIFT IN POLICY
India, in 2015, launched a scheme called Quicker Adoption and Manufacturing of Hybrid and Electrical Vehicles under which it suggested incentives for clean fuel technology cars to boost their sales to up to seven million vehicles by 2020.
Despite incentives as high as 140,000 rupees ($Two,175) on some cars the scheme has made little progress, with the sales of electrified and hybrid cars making up only a fraction of the three million passenger vehicles sold in India in 2016.
The scheme, which expired on March 31, has now been extended by six months while future policy is worked out, two government officials said. Lack of clarity on policy risks delaying investment in the auto sector, one official added.
The fresh Niti Aayog report, co-produced with U.S. consultancy Rocky Mountain Institute, outlines a 15-year plan, cracked into three phases commencing in 2017.
«Limit registration of conventional vehicles through public lotteries and complement that with preferential registration for electrical vehicles, similar to that in China,» the report said, in one of its most radical proposals.
To kick-start the shift, the report suggests bulk procurement of electrified vehicles, building standardized, swappable batteries for two- and three-wheelers to bring down their cost and having favorable tariff structures for charging cars.
«Prioritize battery and charging infrastructure development,» the report states, while setting a two thousand eighteen purpose for setting up a two hundred fifty megawatt per hour battery plant with an aim to reach one gigawatt of production by 2020.
It also recommends setting up battery exchanging stations by 2018, common manufacturing facilities for components and enhancing subsidies on all battery electrical vehicles to bring them to cost parity with conventional models by 2025.
Other suggestions in the blueprint include incentivising the use of electrical cars as taxis by lowering taxes, interest rates on loans for purchases and electric current tariffs for fleet operators, and lowering duties on makers of such fleet cars.
Puneet Gupta, South Asia manager at consultant IHS Markit, said the government would need to lead the switch with generous incentives to achieve its aim.
«This is one of the most radical switches the government is talking about,» said Gupta. «All cars being electrified is a distant desire.»
Reporting by Aditi Shah; Editing by Euan Rocha and Alex Richardson
Sensational: India s green car plan prioritizes electrical vehicles over hybrids, Reuters
Sensational: India's green car plan prioritizes electrified vehicles over hybrids
Fresh DELHI (Reuters) – India`s most influential government think-tank has recommended lowering taxes and interest rates for loans on electrical vehicles, while capping sales of conventional cars, signaling a dramatic shift in policy in one of the world`s fastest growing auto markets.
A draft of the 90-page blueprint, seen by Reuters, also suggests the government opens a battery plant by the end of two thousand eighteen and uses tax revenues from the sale of petrol and diesel vehicles to set up charging stations for electrical vehicles.
The recommendations in a draft report by Niti Aayog, the planning bod headed by Prime Minister Narendra Modi, are aimed at electrifying all vehicles in the country by two thousand thirty two and will likely form a fresh mobility policy, said government and industry sources.
The report`s concentrate solely on electrified vehicles marks a shift away from the current policy that incentivises both hybrid vehicles – which combine fossil fuel and electrified power – and electrical cars, and is worrying some automakers.
«India`s potential to create a fresh mobility paradigm that is collective, electrical and connected could have a significant influence domestically and globally,» said a draft version of the report, titled Transformative Mobility Solutions for India, which will be made public this week.
India`s plan to leapfrog hybrid technology comes after China announced aggressive measures last year to shove sales of plug-in vehicles including subsidies, research funding and rules designed to discourage fossil-fuel cars in big cities.
It would also mark a radical response by India as it looks to cut its oil import bill to half by two thousand thirty and reduce emissions as part of its commitment to the Paris climate treaty.
Officials acknowledge the blueprint faces challenges. High battery costs would shove up car prices and a lack of charging stations and other infrastructure means car makers, who have been consulted on the proposals ahead of publication, would hesitate to make the necessary investment in the technology.
«If we accelerate electrical vehicle growth it will be a disruption for the auto sector and would require investment, but if we`re not able to adapt quickly we risk being net importers of batteries,» said a government source involved in the plans. «There has been resistance from car makers.»
India`s top-selling carmaker Maruti Suzuki has invested in so-called mild-hybrid technology, which makes less use of electrical power than total hybrids, while Toyota Motor Corp sells its luxury hybrid Camry sedan in the country.
Mahindra & Mahindra is the only manufacturer of electrified vehicles in India.
SHIFT IN POLICY
India, in 2015, launched a scheme called Swifter Adoption and Manufacturing of Hybrid and Electrical Vehicles under which it suggested incentives for clean fuel technology cars to boost their sales to up to seven million vehicles by 2020.
Despite incentives as high as 140,000 rupees ($Two,175) on some cars the scheme has made little progress, with the sales of electrified and hybrid cars making up only a fraction of the three million passenger vehicles sold in India in 2016.
The scheme, which expired on March 31, has now been extended by six months while future policy is worked out, two government officials said. Lack of clarity on policy risks delaying investment in the auto sector, one official added.
The fresh Niti Aayog report, co-produced with U.S. consultancy Rocky Mountain Institute, outlines a 15-year plan, cracked into three phases beginning in 2017.
«Limit registration of conventional vehicles through public lotteries and complement that with preferential registration for electrical vehicles, similar to that in China,» the report said, in one of its most radical proposals.
To kick-start the shift, the report suggests bulk procurement of electrical vehicles, building standardized, swappable batteries for two- and three-wheelers to bring down their cost and having favorable tariff structures for charging cars.
«Prioritize battery and charging infrastructure development,» the report states, while setting a two thousand eighteen objective for setting up a two hundred fifty megawatt per hour battery plant with an aim to reach one gigawatt of production by 2020.
It also recommends setting up battery interchanging stations by 2018, common manufacturing facilities for components and enhancing subsidies on all battery electrical vehicles to bring them to cost parity with conventional models by 2025.
Other suggestions in the blueprint include incentivising the use of electrical cars as taxis by lowering taxes, interest rates on loans for purchases and tens unit tariffs for fleet operators, and lowering duties on makers of such fleet cars.
Puneet Gupta, South Asia manager at consultant IHS Markit, said the government would need to lead the switch with generous incentives to achieve its purpose.
«This is one of the most radical switches the government is talking about,» said Gupta. «All cars being electrical is a distant fantasy.»
Reporting by Aditi Shah; Editing by Euan Rocha and Alex Richardson
Off the hook: India s green car plan prioritizes electrical vehicles over hybrids, Reuters
Special: India's green car plan prioritizes electrified vehicles over hybrids
Fresh DELHI (Reuters) – India`s most influential government think-tank has recommended lowering taxes and interest rates for loans on electrified vehicles, while capping sales of conventional cars, signaling a dramatic shift in policy in one of the world`s fastest growing auto markets.
A draft of the 90-page blueprint, seen by Reuters, also suggests the government opens a battery plant by the end of two thousand eighteen and uses tax revenues from the sale of petrol and diesel vehicles to set up charging stations for electrified vehicles.
The recommendations in a draft report by Niti Aayog, the planning figure headed by Prime Minister Narendra Modi, are aimed at electrifying all vehicles in the country by two thousand thirty two and will likely form a fresh mobility policy, said government and industry sources.
The report`s concentrate solely on electrical vehicles marks a shift away from the current policy that incentivises both hybrid vehicles – which combine fossil fuel and electrified power – and electrified cars, and is worrying some automakers.
«India`s potential to create a fresh mobility paradigm that is collective, electrical and connected could have a significant influence domestically and globally,» said a draft version of the report, titled Transformative Mobility Solutions for India, which will be made public this week.
India`s plan to leapfrog hybrid technology comes after China announced aggressive measures last year to thrust sales of plug-in vehicles including subsidies, research funding and rules designed to discourage fossil-fuel cars in big cities.
It would also mark a radical response by India as it looks to cut its oil import bill to half by two thousand thirty and reduce emissions as part of its commitment to the Paris climate treaty.
Officials acknowledge the blueprint faces challenges. High battery costs would thrust up car prices and a lack of charging stations and other infrastructure means car makers, who have been consulted on the proposals ahead of publication, would hesitate to make the necessary investment in the technology.
«If we accelerate electrical vehicle growth it will be a disruption for the auto sector and would require investment, but if we`re not able to adapt quickly we risk being net importers of batteries,» said a government source involved in the plans. «There has been resistance from car makers.»
India`s top-selling carmaker Maruti Suzuki has invested in so-called mild-hybrid technology, which makes less use of electrical power than utter hybrids, while Toyota Motor Corp sells its luxury hybrid Camry sedan in the country.
Mahindra & Mahindra is the only manufacturer of electrified vehicles in India.
SHIFT IN POLICY
India, in 2015, launched a scheme called Swifter Adoption and Manufacturing of Hybrid and Electrified Vehicles under which it suggested incentives for clean fuel technology cars to boost their sales to up to seven million vehicles by 2020.
Despite incentives as high as 140,000 rupees ($Two,175) on some cars the scheme has made little progress, with the sales of electrical and hybrid cars making up only a fraction of the three million passenger vehicles sold in India in 2016.
The scheme, which expired on March 31, has now been extended by six months while future policy is worked out, two government officials said. Lack of clarity on policy risks delaying investment in the auto sector, one official added.
The fresh Niti Aayog report, co-produced with U.S. consultancy Rocky Mountain Institute, outlines a 15-year plan, cracked into three phases embarking in 2017.
«Limit registration of conventional vehicles through public lotteries and complement that with preferential registration for electrified vehicles, similar to that in China,» the report said, in one of its most radical proposals.
To kick-start the shift, the report suggests bulk procurement of electrified vehicles, building standardized, swappable batteries for two- and three-wheelers to bring down their cost and having favorable tariff structures for charging cars.
«Prioritize battery and charging infrastructure development,» the report states, while setting a two thousand eighteen aim for setting up a two hundred fifty megawatt per hour battery plant with an aim to reach one gigawatt of production by 2020.
It also recommends setting up battery exchanging stations by 2018, common manufacturing facilities for components and enhancing subsidies on all battery electrified vehicles to bring them to cost parity with conventional models by 2025.
Other suggestions in the blueprint include incentivising the use of electrical cars as taxis by lowering taxes, interest rates on loans for purchases and electrical play tariffs for fleet operators, and lowering duties on makers of such fleet cars.
Puneet Gupta, South Asia manager at consultant IHS Markit, said the government would need to lead the switch with generous incentives to achieve its aim.
«This is one of the most radical switches the government is talking about,» said Gupta. «All cars being electrical is a distant wish.»
Reporting by Aditi Shah; Editing by Euan Rocha and Alex Richardson
Special: India s green car plan prioritizes electrified vehicles over hybrids, Reuters
Sensational: India's green car plan prioritizes electrical vehicles over hybrids
Fresh DELHI (Reuters) – India`s most influential government think-tank has recommended lowering taxes and interest rates for loans on electrical vehicles, while capping sales of conventional cars, signaling a dramatic shift in policy in one of the world`s fastest growing auto markets.
A draft of the 90-page blueprint, seen by Reuters, also suggests the government opens a battery plant by the end of two thousand eighteen and uses tax revenues from the sale of petrol and diesel vehicles to set up charging stations for electrified vehicles.
The recommendations in a draft report by Niti Aayog, the planning assets headed by Prime Minister Narendra Modi, are aimed at electrifying all vehicles in the country by two thousand thirty two and will likely form a fresh mobility policy, said government and industry sources.
The report`s concentrate solely on electrified vehicles marks a shift away from the current policy that incentivises both hybrid vehicles – which combine fossil fuel and electrical power – and electrified cars, and is worrying some automakers.
«India`s potential to create a fresh mobility paradigm that is collective, electrified and connected could have a significant influence domestically and globally,» said a draft version of the report, titled Transformative Mobility Solutions for India, which will be made public this week.
India`s plan to leapfrog hybrid technology comes after China announced aggressive measures last year to shove sales of plug-in vehicles including subsidies, research funding and rules designed to discourage fossil-fuel cars in big cities.
It would also mark a radical response by India as it looks to cut its oil import bill to half by two thousand thirty and reduce emissions as part of its commitment to the Paris climate treaty.
Officials acknowledge the blueprint faces challenges. High battery costs would thrust up car prices and a lack of charging stations and other infrastructure means car makers, who have been consulted on the proposals ahead of publication, would hesitate to make the necessary investment in the technology.
«If we accelerate electrified vehicle growth it will be a disruption for the auto sector and would require investment, but if we`re not able to adapt quickly we risk being net importers of batteries,» said a government source involved in the plans. «There has been resistance from car makers.»
India`s top-selling carmaker Maruti Suzuki has invested in so-called mild-hybrid technology, which makes less use of electrified power than utter hybrids, while Toyota Motor Corp sells its luxury hybrid Camry sedan in the country.
Mahindra & Mahindra is the only manufacturer of electrified vehicles in India.
SHIFT IN POLICY
India, in 2015, launched a scheme called Swifter Adoption and Manufacturing of Hybrid and Electrical Vehicles under which it suggested incentives for clean fuel technology cars to boost their sales to up to seven million vehicles by 2020.
Despite incentives as high as 140,000 rupees ($Two,175) on some cars the scheme has made little progress, with the sales of electrical and hybrid cars making up only a fraction of the three million passenger vehicles sold in India in 2016.
The scheme, which expired on March 31, has now been extended by six months while future policy is worked out, two government officials said. Lack of clarity on policy risks delaying investment in the auto sector, one official added.
The fresh Niti Aayog report, co-produced with U.S. consultancy Rocky Mountain Institute, outlines a 15-year plan, cracked into three phases kicking off in 2017.
«Limit registration of conventional vehicles through public lotteries and complement that with preferential registration for electrified vehicles, similar to that in China,» the report said, in one of its most radical proposals.
To kick-start the shift, the report suggests bulk procurement of electrical vehicles, building standardized, swappable batteries for two- and three-wheelers to bring down their cost and having favorable tariff structures for charging cars.
«Prioritize battery and charging infrastructure development,» the report states, while setting a two thousand eighteen aim for setting up a two hundred fifty megawatt per hour battery plant with an aim to reach one gigawatt of production by 2020.
It also recommends setting up battery exchanging stations by 2018, common manufacturing facilities for components and enhancing subsidies on all battery electrified vehicles to bring them to cost parity with conventional models by 2025.
Other suggestions in the blueprint include incentivising the use of electrical cars as taxis by lowering taxes, interest rates on loans for purchases and electro-stimulation tariffs for fleet operators, and lowering duties on makers of such fleet cars.
Puneet Gupta, South Asia manager at consultant IHS Markit, said the government would need to lead the switch with generous incentives to achieve its purpose.
«This is one of the most radical switches the government is talking about,» said Gupta. «All cars being electrified is a distant wish.»
Reporting by Aditi Shah; Editing by Euan Rocha and Alex Richardson