Americans have employed the same strategy as Europeans as well as the Chinese. India is probably the next country to implement the carrot and stick strategy to encourage the country toward greener cars. After facing a lot of resistance from the automobile industry, the proposal of NITI Aayog to sell exclusively electric vehicles after 2030, stopping the production of diesel-powered and petrol cars, has been the motivation of government officials in the Indian government.
Limiting the Carbon Emission
According to reports in the media, authorities are preparing to implement tough measures to focus the attention on EVs. Setting strict emission standards is among the strategies that the government might use to stop Internal Combustion Engines (ICEs). One option is to enforce CAFE standards, which are similar to the corporate average fuel economy (CAFE) standards, which were widely used throughout the United States.
Carbon emission targets may limit the intensity of vehicle emissions by every automaker in order to ensure that all models that are produced under the brand name comply with the emission standards that are permitted. These measures could raise the price of conventional ICE engines and, ultimately, will give an increase in sales of electric vehicles.
Pay the Price Strategy
Utilizing the concept of “polluter pays for the cost , “the government can raise tax rates on ICE vehicles and make them less attractive to buy. The funds raised can be used to encourage the EV market. Recently, the government held a conference; the government met with the heads of three-wheeler and two-wheeler electric firms, and they were asked to develop specific steps to move into electric-powered mobility.
In the news, to boost the EV sector, the government is presently brainstorming about reducing the tax on goods and services (GST) for electric cars to five percent from 12 percent. Tax reductions are also anticipated to spur global companies to get involved in India’s growing electronic mobility market to lower pollution levels.
The Little Context
In order to speed up the adoption of electric vehicles In order to speed up the adoption of e-mobility, the Indian state’s government’s think tank, NITI Aayog, proposed the purchase of solely electric cars in the next decade within a cabinet memo last week. Its Ministry of Road Transport and Highways has suggested preparing an outline to end the sale of petrol and diesel vehicles until 2030.
Automobile giants like TVS, Hero MotoCorp, and Bajaj Auto raised concerns about the transition. At the same time, industry organizations such as the Confederation of Indian Industry (CII) and the Society of Indian Automobile Manufacturers (SIAM) have said the government has made an unwise decision.
