Uttarakhand is promoting purchase of Electric Vehicles. Details Inside.
We are in the middle of the biggest revolution in motoring. Big car companies are increasing the manufacturing of electric vehicles ( EVs )
As per the many observers, sales of electric vehicles (EVs) will very rapidly take over petrol and diesel cars and may be done much more quickly than we can ever imagine at least the world’s biggest carmakers thinks so.
Jaguar plans to sell only electric cars from 2025, Volvo from 2030 and the British sports car company Lotus just announced it would follow suit, selling only electric models from 2028. This is as big as it can get but hang on for a second, this isn't just premium brands. General Motors says it will make only electric vehicles by 2035, Ford says all vehicles sold in Europe will be electric by 2030 and VW says 70% of its sales will be electric by 2030.
The fact many governments around the world are setting targets to ban the sale of petrol and diesel vehicles gives a boost to this process. It is more to do with the technological revolution and as we witness in the past, technological revolutions tend to happen very quickly and this time it will be electric
Incentives for EV Buyers in Uttarakhand
- 100 percent exemption of stage carriage permits for commercial vehicles for 5 years from the date of registration for the first 100,000 customers.
- 100 percent exemption from paying Motor Vehicle Tax for first 100,000 customers for 5 years from the date of registration
Remember Internet days in the 2000s
Back in the late 90s and early 2000s, if someone would say one can buy things online or meet people online, can post their daily activities for the world to see you would have laughed it off. Those were the days when Jeff Bezos was setting up Amazon, there was no Facebook or Instagram and Google was a smaller entity compared to Yahoo. Who would have imagined you can access something like Youtube from the palm of your hand.
With the Dot-com bubble, companies like Amazon, Apple, Google, Facebook changed the landscape forever. I don’t think today’s kids will ever believe there existed a world without smartphones.
Internet’s growth was explosive. It crushed all the businesses around and changed the way we do business or even diplomacy. Twitter is the biggest diplomacy tool these days and not acknowledging a person or a country over Twitter can rough up many egos. The vehicle industry is facing the same kind of technological curve albeit much more rapidly.
New technological shift in the automobile industry
The steam engines and printing presses and others things also followed the same trajectory of evolution in the last century. Electric vehicles are on the same path.
The first crude electric car was developed by the Scottish inventor Robert Anderson in the 1830s but it is only in the last few years that the technology has been available at the kind of prices that make it competitive and now it has the support of governments across the globe who eagerly wants to find an alternate to Petrol / Diesel.
Manufacturers have lots of reasons to increase EV production. From lenient government policies, to reduce in the prices of batteries, to increase in demand, all things combine making it a lucrative deal for the producers.
Future of EVs in India
With Tesla announcing setting up its unit in India, EVs has finally arrived in the country. Concerted policy push and innovations from automotive manufacturers are fast making e-mobility viable. Under the Make In India programme, the manufacturing of e-vehicles and their associated components is expected to increase the share of manufacturing in India’s GDP to 25% by 2022. On the economic front, large-scale adoption of electric vehicles is projected to help save $60 billion on oil imports by 2030 - currently, 82% of India’s oil demand is fulfilled by imports. The price of electricity as fuel could fall as low as Rs 1.1/km, helping an electric vehicle owner save up to Rs. 20,000 for every 5,000km travelled. Finally, electrification will help reduce vehicular emissions, a key contributor to air pollution which causes an average 3% GDP loss every year.
Uttarakhand EV Policy
To promote EVs in the state, the Uttarakhand government came up with 'The Uttarakhand EV Manufacturing Promotion and Related Services Infrastructure Policy in 2018. With this Uttarakhand has become only the second state after UP to promote manufacturing and promotion of electric vehicles.
This policy also aimed at making Uttarakhand a manufacturing hub for electric vehicles. It seeks to create the demand and supply sides of the market for the manufactures and also to create employment opportunities in the state. Pantnagar and Haridwar in Uttarakhand have already emerged as major manufacturing hubs in northern India with the presence of companies like Tata Motors, Ashok Leyland and Mahindra etc.
Incentives offered under the Policy for manufactures
- Interest subsidy will be applicable for 5 years date of commercial production
- For investment between Rs 100 million to 500 million, interest subsidy @5 percent to maximum of up to Rs 300,000 will be applicable for term loans
- For investment above Rs 500 million, interest subsidy with @7 percent to a maximum of Rs 2.5 million for large units, Rs 3.5 million for Mega units and Rs 5 million for Ultra-large units
- 50 percent exemption on Stamp Duty is given for investment between Rs 100 million to 500 million and above Rs 500 million.
External Infrastructure Subsidy
- Rebate of 15 percent, 25 percent and 35 percent on SIDCUL prevailing land rate for investment above 50 crores
- For manufacturing units that employ at least 100 people, the state government will contribute to employee provident fund per company to the tune of ₹20 million
- The government will also contribute towards the GST paid by MSMEs, to the tune of 30 to 50 percent of the entire GST paid by them for 5 years from the date of start of production.
- 100 percent exemption on Electricity Duty for 5 years commercial production
The future for electric vehicles looks bright in India particularly in Uttarakhand so if you haven’t joined the bandwagon, now is the time.