Give us tax breaks, will go all-electric: SIAM

NEW DELHI: The auto industry has proposed a roadmap to the government about making the sector all-electric by 2047. In a white paper submitted to the Union power ministry on Monday, the Society of Indian Automobile Manufacturers (SIAM) committed to making 40 per cent of cars and the entire public transport segment electric by 2030 and going all-electric by 2047.

Industry sources told Express that both commitments are contingent on whether the government agrees to certain tax breaks and other concessions both to manufacturers and buyers of electric vehicle.

“None of these is unconditional, though. They are contingent on certain policy decisions from the government, like some changes in the GST structure for electric vehicles (EVs),” said the top executive with a major auto firm. “The outline contains tax breaks for EVs, income tax exemptions for auto loans, concessions like battery charging subsidies to boost the infrastructure needed, etc.”

The auto industry’s submission was initiated after the power ministry requested a white paper on how electrification of the automobile market could be achieved.

The industry’s recommendations come at a time when the government has started pushing auto majors to sharpen their focus on EVs. The government’s goal is to have an all-electric market by 2030.

While Union ministers have made constant statements warning the sector to diversify, the government has also initiated procurement of EVs through the state-run Energy Efficiency Services (EESL). The firm had floated a tender for 10,000 electric vehicles and Tata Motors, which won the bid for the first phase, recently delivered the first batch of electrified Tigors to EESL. It is to supply 250 such cars to EESL in the first phase.