Union Budget 2019 India: Senior company official says that there are other forms of green mobility as well which will help in fossil fuel conservation and lowering of carbon emissions.
Budget 2019 has a lot in store for fast-tracking e-mobility in India. From proposing an income tax reduction of Rs 1.5 lakh on the interest paid on loans for the purchase of electric vehicles, to lowering of the tax rate from the current 12 per cent to 5 per cent. The Finance Minister has also announced that customs duty on certain components of the electric vehicles will also be exempted. For the faster adoption of electric vehicle in India under the FAME II scheme, the Finance Ministry has already approved Rs 10,000 crore on April 1, 2019.
Responding to the Budget 2019, Shekar Viswanathan, Vice Chairman & Whole-time Director, Toyota Kirloskar Motor said “The focus of the 89th Union Budget has mostly been on connectivity and infrastructure emphasizing on demand for connectivity across rural and urban markets. Infrastructure focus including those on road development will lead to faster and more effective mobility solutions. This is positive news for the auto sector. Initiatives for improving liquidity in the market by capital infusion in the banks should also be of some help to the industry. Furthermore, the proposal of streamlining labour laws could lead to faster resolution of labour disputes.
He further added that “We appreciate the government’s initiative to promote a clean & green environment with special benefits to encourage electric vehicles (EV). EVs do bring the benefits towards fossil fuel conservation and lowering of carbon emissions. There are other forms of green mobility which will help the government achieve the same objective. The government should also align its taxation policies towards such green mobilities which promote the reduction of fossil fuel & betterment of the environment. Thus, the focus of taxation should not only be restricted to promote and facilitate the shift to all types of green mobilities but should also be towards all other means which contribute effectively to increased fuel economy and reduced tailpipe emissions.”
Viswanathan said that “We see the future moving towards an era with more alternate cleaner & efficient powertrains on roads that the customers and market will ultimately decide based on their mobility requirements. The eco-system should facilitate the consumers to choose the clean vehicle technology that best suits his/her mobility needs, thus enabling environmentally sustainable growth of the nation.”
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Though the 2019 Budget has plenty of proposals to benefit electric vehicles, no announcement was made for hybrid vehicles which are considered to be an integral part of the transformation from gasoline/diesel driven vehicle to fully electric ones. Toyota is currently one of the pioneers in hybrid vehicle technology. in India as well as abroad. Its global model Prius is the largest selling hybrid vehicle across many countries and was one of the earlier mass markets products in this category.