New auto policy may focus on optimizing taxes

In response to the government's call for all electric vehicle by 2030, the auto industry is displaying stunning electric as well as hybrid concept car at Auto Expo 2018. But in the same breath automakers are asking for incentives, tax sop to provide affordability to consumers along with eco-friendly technology.

A major concern of the auto manufacturers is the high tax levy on electronic vehicles (EVs). For the adoption of electric-fueled vehicles, a lot of CapEx will be incurred by the industry to design, test new concept vehicles and to transform existing production processes for EVs.

Taking into consideration these issues, the government is working on a new foolproof auto policy which will address tax rates, said Anant Geete Minister of Heavy Industries and Public Enterprises. As the government is making a rush to directly jump to BS-VI emission norms, the industry must be ready to accept the challenge and adopt new technologies, said Abhay Firodia President of Society of Indian Automobile Manufacturers (SIAM).

As everyone is concerned about the environment and wants eco-friendly products, the industry is expecting to receive some monetary help from the government to invest in technology, so that EVs are affordable to the Indian buyers. The Industries Minister stated that it is holding talks with all stakeholders of the auto industry to draft a new policy that will be out in two months.