HYDERABAD: The government’s announcement of a 100% exemption on road tax and registration fees for electric vehicles (EVs) has evoked mixed reactions from stakeholders and experts. While the move to promote green mobility and environment-friendly vehicles has been widely welcomed, concerns are being raised about addressing existing challenges in manufacturing, battery technology and charging infrastructure.
Speaking to TNIE, Venugopal Rao Nellutla, an electric mobility expert and independent consultant, called the tax exemption “commendable” for boosting consumer confidence by reducing EV costs. However, he urged the government to prevent unethical practices, such as the artificial inflation of ex-showroom prices by Original Equipment Manufacturers (OEMs) or dealers of EVs.
To safeguard consumer interests and maintain policy integrity, he suggested introducing a ‘price monitoring mechanism’. He recommended establishing a regulatory body to track and audit EV pricing trends before and after the exemption’s implementation. Drawing parallels with the Gujarat Energy Development Agency model, Venugopal said the government should mandate transparency in pricing. “OEMs and dealers must provide a detailed price breakup, including the manufacturer billing price, logistics, margins and taxes, to ensure consumers, particularly ill-informed buyers of three-wheeler EVs, are fully informed,” he said, adding that penalties should be imposed on violators for manipulating prices.
Focus on infra
Alwala Devender Reddy, founder of Eride E-Mobility, highlighted the policy’s potential to reduce vehicular emissions and contribute to India’s goal of achieving carbon neutrality by 2070. Speaking to TNIE, he noted improvements in battery safety following the introduction of the Automotive Research Association of India and International Centre for Automotive Technology standards. “New software and awareness initiatives have mitigated battery-related incidents. Transitioning from lithium-ion to hydrogen batteries is the next step,” he said.
However, Devender highlighted the urgent need to expand charging infrastructure, especially along highways. He also advocated for a unified “One Nation, One EV Policy” to accelerate EV adoption, stressing that EVs and Internal Combustion Engine (ICE) vehicles would need to coexist during the transition phase.
Concerns of consumers
Auto drivers expressed apprehensions about the policy’s impact on existing CNG, LPG and ICE-powered auto-rickshaws. “We are awaiting detailed guidelines. The government must ensure support for non-EV rickshaws to prevent their marginalisation under the new policy,” said Sathi Reddy, a member of the Joint Action Committee of the Auto Drivers’ Union.
Consumers, while welcoming the tax exemption, flagged issues of range anxiety and inadequate charging stations as barriers to choosing EVs over ICE vehicles. Experts also acknowledged the issue of range anxiety among EV users, particularly car owners, and emphasised the need for further R&D in this area.
Mahesh Kumar, a car rental business owner from Rangareddy, said, “The incentives on road tax and registration fees sound profitable, but range and charging time challenges make me hesitant to switch to EVs immediately.”