Wednesday, December 27, 2017
By Manoj Kumawat
Electric Mobility: Stuns The Auto Manufacturers in 2017
With only few days left to see-off the year 2017 its time for us to analyze the situation of Indian automobile industry to assess its future. The beginning of the year witnessed the car makers struggling with the impacts of demonetization imposed during the last months of the year 2016. Although the major car makers succeed in enjoying substantial success for the vehicles launched by them during the year, but still the year cannot be considered as the super successive year for the automobile industry. On the contrary an announcement made by the then Minister of Power, Government of India in the beginning of the year saying the government is “assessing the possibility of having all-vehicle electric market by 2030” has created the lines of tension on the faces of all auto manufacturers.
Interestingly when the carmakers started thinking for their future strategy keeping the policy of government in concern, the intention of government towards introduction of electric mobility became clear with the announcement of 12% tax on electric vehicles as compared to 29% tax on vehicles running of fossil fuels. This tax differentiation is quite feasible for the buyers of electric vehicles but quite discriminating for the manufacturers of the electric vehicles which about 60-70 percent expensive than cars running of petrol and diesel.
With this the GST panel also announced to charge 43% tax for the manufacturing of hybrid cars thus compelling the key players like Hyundai and others to postpone their plans of introducing hybrid vehicles in the Indian car market. Going through this decision the car makers had to redesign their strategy keeping the electric mobility in the concern. The main reason behind the concern is lack of clarity in the policy determined by the government for the introduction of electric vehicles in India.
Now although the future of electric vehicles in the Indian car market will be decided in coming years, the cars to dominate the year in 2018 and 2019 will be showcased during the highly awaited Indian Auto Expo 2018 which is believed to exhibit the glimpse of future car market in India.