VEHICLES OVER HYBRIDS FOR NITI AAYOG

NEWDELHI: Niti Aayog has recommended lowering taxes and interest rates for loans on electric vehicles, while capping sales of conventional cars, signalling a shift in policy in one of the world’s fastest growing auto markets.

A draft of the 90-page blueprint, seen by Reuters, also suggests the Centre opens a battery plant by 2018 end and uses tax revenues from the sale of petrol, diesel vehicles to set up charging stations for electric vehicles.

The recommendations are aimed at electrifying all vehicles in the country by 2032, said government and industry sources.

The report’s focus solely on electric vehicles marks a shift away from the current policy that incentivises both hybrid vehicles, which combine fossil fuel and electric power, and electric cars. “India’s potential to create a new mobility paradigm that is shared, electric and connected could have a significant impact domestically and globally,” said a draft version of the report, titled Transformative Mobility Solutions for India, which will be made public this week.

Officials acknowledge the blueprint faces challenges. High battery costs would push up car prices and a lack of charging stations and other infrastructure means car makers, who have been consulted on the proposals ahead of publication, would hesitate to make the necessary investment in the technology.

Maruti Suzuki has invested in mild-hybrid technology, which makes less use of electric power than full hybrids, while Toyota Motor Corp sells its luxury hybrid Camry sedan in the country. Mahindra & Mahindra is the only manufacturer of electric vehicles in India.