NITI Aayog Pushes To Make India The Export Hub For Electric Cars

by Vinaya HS on September 24, 2017

in Finance

Thanks for visiting Capital Advisor. I frequently update this blog to cover various topics on personal finance such as investment strategies, financial products that you should buy and ones that you really should stay away from, financial calculators, emerging themes such as early retirement and financial independence, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

The following post is a sponsored post.

The government wishes to go e-mobile and one of the ways suggested by the Chief Executive Officer of NITI Aayog, Amitabh Kant, is to make the country an export hub of electric vehicles. This has come in accordance with the government’s effort for a mass shift to EV’s or electric vehicles by the year 2030 so that every vehicle on Indian roads by 2030 whether it is personal or commercial, is run by electricity.

Recently 57th Annual Convention was held where Kant has said that out of all the developing nations, the penetration of the vehicles in India is the lowest which is only 20 vehicles per 1000 people. He also added that because other countries have higher penetration, it will be difficult for them to make it switch to electric car and because India has low penetration levels, it will be an advantage for our country to become leader in the export hub for electric vehicles.

The government is very clear in stating that by 2032, almost all the vehicles that will be sold in India will become fully electric. The government plans to do so by making several strategies and putting them to action. One of the plan include outright purchase of electric vehicles (EV) by government offices and departments for the official use and also by the state transport for using as the public transport, as the market news says.

Kant also conveyed that by the year 2025, the price of electronic vehicles will be on par with an internal combustion car be it petrol or diesel. Also, by 2026 the sales of the electronic vehicles globally are expected to command 10.4% of the total sales. Kant also revealed that their vision is that the Indian car market will achieve zero tail pipe emission by the year 2040.

As a result, the automobile companies like Mahindra & Mahindra, Tata Motors, Maruti Suzuki, Toyota, Audi and Hyundai have already started investing into the developing electric vehicles. While some of the automobile giants have started working on the plans to build EVs for the future. While Mahindra & Mahindra is the only automobile company to produce and launch electronic vehicles in the country Tata Motors and Hyundai are planning to launch EVs over the next 3 years.

The government is focusing on giving a strong threshold to developing of the battery capacity and making the country a battery production hub. As of now, almost 80% of the world’s battery supply comes from China.

Niti Aayog in the month of May had also recommended to offer fiscal incentives to the manufacturers of EV and had also discouraged the privately-owned petrol- and diesel-fuelled vehicles. This was done to move India towards E-mobility and to meet energy and environment needs. As per the business news, it is believed that India can save about 64% of the energy demand from the road sector for passenger mobility and 37% of carbon emissions in 2030 through its EV program.

For more on Business & Stock Market News, visit BloombergQuint.




Thanks for reading this article. I'd love to hear your opinion. Please use the comments section below to share your thoughts. I frequently write new articles that also cover several other aspects of personal finance including credit cards, financial goals, health insurance, income tax, life insurance, mutual funds, retirement planning, and much more. You can Subscribe through Email and receive new articles directly in your Inbox or you can Subscribe through the RSS Feed and receive new articles in your feed reader.

Previous post:

Next post: