With central government cutting off FAME subsidy, and now state looking to impose taxes, i really don’t think the government wants to actually increase electric adoption.
They got way too greedy way too soon.
Good to know our environment is going to be perpetually fucked.
I believe states have a great incentive to prevent EV adoption. After GST, the easiest way to make revenue for states has been fuel taxes. If all two wheelers go electric, it might represent atleast 40% drop in consumption of petrol and hence corresponding decrease in tax revenues. However I am not sure why the center would stop the subsidy. They could have kept it for a couple of more years and once the local battery eco system is well established, they could have gradually withdrawn it. Oil imports are huge drain on forex and moving to EV allows more flexibility in dealing crude’s volatility. Not to mention the air quality improvements due to EV. That alone should be enough to promote EV heavily in urban areas at least.
Incredibly stupid move.
With central government cutting off FAME subsidy, and now state looking to impose taxes, i really don’t think the government wants to actually increase electric adoption.
They got way too greedy way too soon.
Good to know our environment is going to be perpetually fucked.
I believe states have a great incentive to prevent EV adoption. After GST, the easiest way to make revenue for states has been fuel taxes. If all two wheelers go electric, it might represent atleast 40% drop in consumption of petrol and hence corresponding decrease in tax revenues. However I am not sure why the center would stop the subsidy. They could have kept it for a couple of more years and once the local battery eco system is well established, they could have gradually withdrawn it. Oil imports are huge drain on forex and moving to EV allows more flexibility in dealing crude’s volatility. Not to mention the air quality improvements due to EV. That alone should be enough to promote EV heavily in urban areas at least.
The current EV sales numbers are very low.
Out of total sales, only 4.3% two wheelers were electric, and just 1.3% cars were electric.
Source
It’s impossible that this could lead to 40% drop in consumption of fuel. And even if it does, is electricity free? No! We pay for that as well.
Government is SUPPOSED to bear the difference for the sake of the environment.
If they keep on being so greedy, we will never ever ever be even close to slowing down the impacts of ICE vehicles.