NITI
Aayog has proposed that India completely switch over to Electric
Vehicles by 2030
Yesterday ,
SIAM ( Society of Indian Automotive Manufacturers ) submitted a white
paper to the Ministry of New and Renewable Energy ( MNRE ) , saying :
·
going by the current rate of production and sales it will be
difficult to move all the vehicles to electric by 2030
·
we can move 40%
of the total vehicles by
2030
·
we can switch over to 100 % E-Vehicles , only by 2047
No doubt , Indian Auto Manufacturers are a hard-headed practical
lot , with their feet solidly on the
ground
They know the hurdles to be faced in such
a revolutionary transport transformation
So , it is no surprise that they have
taken a safe / less risk , approach
As an “ Interest Group “ , they had to present a “ Common Front “ to the
Government
But , no one need
doubt that in their “ Individual
Capacity “ , each auto manufacturer is a “ Rational Player “ , working double-time to get
ahead of the competitors to grab a bigger share of the “ Market Pie “ , as
explained below :
=======================================================
In its mildest form, rationality implies that
every player is motivated by maximizing
his own payoff.
In a
stricter sense, it implies that every player always maximizes his utility, thus being able to perfectly calculate the probabilistic
result of every action.
Now , imagine that the ROAD-MAP DOCUMENT for ELECTRIC
VEHICLES ( - which is expected to get released by the Transport Ministry by this month-end ) ,
contains the following provision :
EVICT [ Electric
Vehicle Incentive Corporate Tax ] Scheme :
·
The annual revenue ( income ) through sale of Electric Vehicles will be exempt
from Corporate Income Tax
·
There will be a GST
of 5 % on sale of Electric Vehicle and of 25 % on Petrol / Diesel
Vehicles
·
The income from sale of Petrol / Diesel vehicles will be subject to normal Corporate
Income tax @ 30 %
·
For the same period, sale of India-manufactured Lithium-ion Batteries
will be exempt from
Corporate Income Tax
·
This provision will commence from
01 April 2018 and
expire on 31 March 2035
·
All Auto Manufacturers will need to submit to the Transport
Ministry , an Annual
Return , showing the break-up of Sales ( Numbers of Vehicles and Revenue
– wise ) between the Petrol-Diesel and the Electric Vehicles ( with copy to
Finance Ministry )
I get a feeling that , if such a provision were to be part of the ROAD MAP , that “ Road “
will , suddenly shrink from
year 2047 to year 2027 – without needing any persuasion !
And , without having to offer any other “ Incentive
/ Subsidy [ ala Piyush
Plan
of 25 March 2015 ]
“ , either to Auto Manufacturers or to the buyers !
Reason ?
With no Corporate Income Tax and a GST of
just 5 % , Auto Manufacturers will be able to price their Electric cars, 25% BELOW the selling price of
equivalent Petrol car !
Lower price driven demand will ensure early adoption without other
incentives
Not only that
To ensure that the buyers of E Cars do not suffer from “ Range
Anxiety “ [ in absence of BatteryCharging Stations , at every kilometre distance ] , the Auto
Manufacturers will come up with ISRO-inspiredE Cars with Solar Roof Top Panels , charging a 5 Kwh
Lithium-ion Battery !
And charging from domestic electric outlet at
home , overnight !
Dear Shri Nitin
Gadkariji :
In the past ( by beingangry and bulldozing ) , you have not endeared yourself to the Auto
Manufacturers )
But by announcing
the EVICT Scheme in the current session of Lok Sabha,
you will set in motion the wheels of an unprecedented industrial revolution !
20 Dec 2017
www.hemenparekh.in /
blogs
No comments:
Post a Comment