NEW DELHI: The auto industry has proposed a roadmap to the government on converting India into an all electric market by 2047. In a white paper submitted to the Union Power Ministry on Monday, the Society of Indian Automobile Manufacturers (SIAM) committed to make the full leap to EVs by 2047, and conversion of 40 per cent of cars and the entire public transport segment electric by 2030.
Two industry sources told Express, however, that both commitments are contingent upon whether the government agrees to certain tax breaks and other concessions, both to manufacturers and electric vehicle buyers, mapped out in the white paper.
“The white paper was submitted to Power Minister yesterday (Monday) and contains an outline of a proposal where full electrification of the automobile fleet is achieved by 2047. By 2030, the industry has also committed to electrify 40 per cent of cars and the entire public transport fleet,” said an industry source.
“All these are not unconditional, however. They are contingent on certain policy decisions from the government, like some changes in the GST structure for EVs,” said an official in a market leading auto major. “The outline contains tax breaks for EVs, income tax exemptions for auto loans, concessions like battery charging subsidies to boost the infrastructure needed, etc etc.”
The auto industry’s submission was initiated after the Power Ministry requested a white paper on how electrification of the automobile market could be achieved.
The recommendations made in the white paper come even as the government has begun tightening the screws on auto majors to begin fraying seriously into EVs, part of its goal of achieving a completely electric auto market by 2030.
While union ministers have made constant statements warning the sector to diversify, the government has also initiated procurement of EVs through the state run Energy Efficieny Services Ltd (EESL). The firm floated a tender for 10,000 electric vehicles and Tata Motors, which won the bid for the first phase, recently delivered the first batch of electrified Tigors to EESL. The firm supply 250 such cars to EESL in the first phase.