Incentives for faster adoption of Electric cars- Indian Government


Budget 2019 came in a new way by introducing various incentives for electric vehicles. The finance minister, came up with a bundle of provisions for a faster adoption of Electric vehicles. Continuation of the FAME policy with an inclusion of battery powered vehicles, e-rickshaws and strong and plug-in Hybrid technology.

Furthermore, there is a tax deduction on EV chargers to 5% from 18%. This is an extension step to the reduction of tax on electric vehicles from 12% to 5%.

incentives on e-rickshaws, bikes

Additionally, an exemption of 1.5L on tax for the interest paid on loan for buying Electric vehicles is also on budget papers. On the reality front, there are even charges exemption on the registration of electric vehicles (2,3 &4 wheeler).

Moreover, there are a wide range of incentives at the state government and corporate levels too.

Under the exemption list, the heavy vehicles bought by local government (more than 12 seating capacity) is also present. Separately, there is a exclusive allocation of nearly 1,000 Crores for setting up charging stations around roads.

1000 Cr incentives on charging stations

Under the FAME scheme, companies are being provided financial assistance and encouragement to develop necessary technology and infrastructure needed for electric vehicles.

FAME-I came up with concentration on corporate sector. That includes encouragement, providing incentives and attracting foreign electric automakers. Section 10AA of Income Tax Act,1961 provides tax exemptions on export activities in electric vehicles sector. The scheme would be providing 100% exemption for first 5 years and 50% for next 5 years. FAME-II concentrates on consumer and government levels.

Meanwhile, encouragement for e-vehicles is becoming a punishment on petrol and Diesel vehicle owners. On the other hand, government proposes to increase Diesel and petrol charges by Rs 1/- and the registration fees for the same vehicles will also increase to sharp heights.

Registration charges exemption on e-cars
Please follow and like us:
No Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

Seltos- Kia’s debutant in India, will be on Indian roads from 22 August.

Kia is all set launch it’s first vehicle ‘Seltos’ in India on August 22. While the bookings have already begun from July, 16. Surprisingly, Kia received 6,046 bookings on the first day itself. Kia is all set to dispatch it’s first ever SUV from its Anantapur Production Facility in Andhra …

Electric vehicles by 2020, the new reality that India wants.

Electric vehicles are growing their field of operation as years are passing. Infact, many countries especially European are using these as an optional source. With growing need of fossil fuels and equally depreciation of resources, the need and exploration of alternative resource is growing it’s pace. In the same scenario, …

Elon Musk- inspiring to fail for success

Born to South African father Errol musk and Canadian mother Maye Musk, Elon is an masterful by birth. Incidentally, his father is an electromechanical engineer, pilot, and sailor. On the other hand, his mother is a model and a dietitian. Elon’s life was not a cake walk so tells his …


Enjoy this blog? Please spread the word :)