Electric vehicles have commenced a new era in automobile sector and going green without compromising on the comfort and convenience has become the sole focus point
From the very beginning when people used to ride on horses, human civilization has come to an end where electric cars are now ruling the roads again. Again? Exactly.
Just after the first motor vehicle by Karl Benz that was patented on 1886, motors vehicles took up the roads around 1900s and at that time there were almost twice as many electric cars on the road than petrol or diesel cars. Slowly, the interest in these cars dwindled during 1920s because of their low top speed and low range, albeit by barely a few miles.
The industry’s game-changer was Tesla's Roadster, which was launched in 2008 and gained huge popularity. Its attractive design and extended range attracted a larger market and encouraged competitors.
The efficiency of electric cars has significantly increased in these years, and no one can deny their cheaper running and maintenance costs apart from being eco-friendly. Issues pertaining to pollution has finally managed to find a place in Indian election manifestos as well. Where Finance Minister Nirmala Sitharaman announced an additional income tax exemption of Rs 1.5 lakh for buyers of electric vehicles in her maiden Budget 2019-2020. She also mentioned that the GST rates on electric vehicles would be lowered to 5 percent. The same has been done by reducing the current rates from 12 percent to 5 percent and 18 percent to 5 percent on electric vehicle (EV) chargers.
The government has also set aside an allocation worth Rs 10,000 crore exclusively for FAME II and EV production in India. This has been done with a view to make the country a hub for electric vehicles manufacturing and usage by 2030. This is supposed to revive the currently struggling auto sector too, though the effects of the same are yet to be seen.
Electric vehicles have commenced a new era in the automobile sector and going green without compromising on the comfort and convenience has become the sole focus point. Government encouraging electric vehicles and bringing out more policies for the same is slowly increasing the interest of Indians towards electric vehicles. With the increase in awareness, the prospects should only get better from here.
The author is Head of Research at CapitalVia Global Research.Disclaimer: The views and investment tips expressed by investment expert on moneycontrol.com are his own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.