- Category: Indian News
- Published on Friday, 04 February 2011 12:12
- Written by Tejas Joseph
- Hits: 814
Unprecedented fuel price hikes and planned governmental concessions can stimulate ev research and development in India.
The dawning of the new financial year of 2010 witnessed a 10% hike in central excise duty (CED) that translated across the board to jumps in prices of many car brands. At the same time the withdrawal of central excise duty on electric vehicles in April 2010 was an acknowledgement that the government was finally willing to support transportation alternatives. While this was good news for the electric vehicle(ev) sector at large , manufacturers expressed dismay at not being able to recover the excise already paid by them on certain parts and componenents in their vehicles. A nominal excise of 4% is being thought of as a suitable intervention to help remedy this little bind ev makers find themselves in presently. Further, a total exemption on basic customs and special additional customs duty has been granted to many critical parts and accesories of electric vehicles comprising two,three and four wheelers. These include batteries, battery chargers and AC/DC electric motors and controllers. The concessions are valid upto 31st March 2013 with a nominal 4% excise levy and subject to actual user conditions.
Since the announcement of these rebates the country has witnessed three fuel price hikes. The future is not going to exempt us from more petrol and diesel hikes from the looks of it. Peak oil is dropping precariously and continuing political instability in various parts of the world is likely to ensure that this trend prevails. It's a good time to go electric!