Vehicle Scrappage Policy: Inputs Sought

The issue is not which is cleaner than the other. The issue is air pollution. Both pollutes the air and causes harm to the lungs. Only thing is at different degree. more  

Electric vehicle manufacturers and startups are left in the lurch as there is no announcement for any new policy for them, especially electric vehicles. The voluntary scrappage policy may indirectly boost demand for electric vehicles. But the increased customs duty on certain auto components to boost domestic manufacturing will hurt the electric vehicle manufacturers as it will increase their cost in India.There is no clarity on the inverted duty structure on batteries. A lithium-ion battery fitted in an EV attracts 12% GST, but it has 18% GST when sold separately, for example. Absence of firmer policy commitment from the government for accelerating e-mobility and enabling charging and battery swapping infrastructure in the country may hurt the electric vehicle manufacturers. Demand for electric vehicles soared in the EU last year as buyers took advantage of government subsidies for clean cars aimed at helping manufacturers weather the unprecedented hit from the Covid-19 pandemic. There was a volume effect and prices fell. Once manufacturing lines are shifted to electric, goal to sell as many vehicles as possible is achieved. more  
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