Niti Aayog, a government think tank headed by India’s prime minister, has prepared a new policy aiming to electrify all vehicles in the country by 2032. It proposes lower taxes and interest rates on loans for fully electric cars, as well as a phased reduction in the number of conventional and hybrid vehicles that can be registered.
The government intends to kickstart the shift by setting up and incentivizing manufacturers of batteries and other components as well as charging stations. It aims to bring price parity between electric cars and conventional or hybrid vehicles by 2025.
Why it matters
A dramatic shift towards green cars in one of the world’s fastest growing auto markets, following similar aggressive measures in China, will be a big move for a cleaner environment. It will also cut India’s huge oil import bill, and help the government spend more on much-needed infrastructure for economic growth.
Clear-cut incentives for green cars will set off a wave of innovation from automakers as well as startups providing support systems, from batteries and components to marketing.