New National Auto Policy in India in 3 months: Govt plans big hybrid and EVs push - The Financial Express

New National Auto Policy in India in 3 months: Govt plans big hybrid and EVs push

It has already been over six months since various stakeholders have started working on the draft automobile policy, which envisages having a single nodal regulatory body for the automobile industry, officials in the Heavy Industry Ministry said.

By: | Published: June 18, 2018 10:22 AM

As India gets ready to adopt new vehicle technology and promote clean and green fuel, Modi government is likely to announce the new National Auto Policy in India which is likely to implement emission-linked taxation structure for automobiles. In about 3 months, the government will announce its green mobility roadmap confirms a PTI report quoting government officials. A draft Cabinet note on the policy is being prepared and will be circulated shortly among departments concerned, they disclosed.

It has already been over six months since various stakeholders have started working on the draft automobile policy, which envisages having a single nodal regulatory body for the automobile industry, officials in the Heavy Industry Ministry said.

"There has also been a discussion on strengthening the FAME India (Faster Adoption and Manufacturing of Electric & Hybrid Vehicles) scheme further for the faster adoption of eco-friendly automobile technologies," a source said.

In an interview to Express Drives, Shekar Viswanathan, Vice Chairman & Whole-time Director, Toyota Kirloskar Motor had said that “our suggestion to the government is to promote all the technologies that reduce pollution and to tax vehicles based on their emissions. More the pollution, more the tax and now emissions are measurable.”

Also read: Toyota bets on mass-market hybrid cars in India

Expect the new national automobile policy to define thresholds for length and CO2 emissions with the objective of neutralizing impact on GST revenue. The draft of the policy released earlier had recommended rationalization of the GST structure for automobiles that is currently based on length, engine displacement, engine type and ground clearance. It had called for replacing the current classification criteria with a composite criterion based on vehicle length and CO2 emissions.

Government's focus to reduce the oil import bill in the country will also see hybrid and electric vehicles getting a big boost. The national EV policy is likely to be included in this automobile policy that will define a long-term road-map in implementing electric cars on Indian roads and defining the long-term road-map for incentives and infrastructure investments for green mobility. It is expected to address the issue of logistics challenges faced by the industry while also finding ways and means to enhance India's automobile exports. The heavy industries ministry had roped in AT Kearney as a consultant to help finalise the policy, officials said.

With Inputs from PTI

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