Reducing import tax on electric vehicle parts, the new energy vehicle market is booming

By | 29/07/2019

India’s New Policy: Reducing Import Taxes on Electric Vehicle Parts

On January 29, 2019, the Indian government announced a reduction in import taxes on electric vehicle parts. The decline is about 10-15%. Previously, import tariffs for electric vehicle components ranged from 15% to 30%. It is reported that the Indian government aims to encourage international electric vehicle manufacturers to land in India for assembly production.

Compared with automobiles or diesel vehicles, the lower tariffs imposed by the Indian government on the import of electric vehicle components will undoubtedly make the price of environmentally friendly vehicles cheaper. At the same time, the import tariff for a pure imported electric vehicle is about 25%. This tariff rate is very attractive. At present, the import tariff rate for gasoline or diesel vehicles in India is as high as 100%.
In addition, the Indian government has formulated a three-year 100 billion rupees (about 1 billion yuan) electric vehicle subsidy scheme for all new cars in 2030 to achieve the goal of electrification. This series of actions shows that the Indian government has made a firm decision on the development of the new energy market.

According to data released by the World Health Organization (WHO) in 2018, 14 of the 20 most polluted cities in the world are from India. The Indian government firmly promotes energy reform and upgrading because of the serious pollution brought by India’s rapid development, which has caused people to suffer from air pollution for a long time. At the same time, the scarcity of oil resources is also a major internal cause of India’s promotion of the development of new energy vehicles.

India’s development of new energy vehicles requires a gradual process, but not overnight. First of all, we need to let people accept new energy vehicles. More importantly, we need to achieve technological breakthroughs as soon as possible, such as energy storage and endurance, as well as safety and other technological breakthroughs. Next, India will start with the electrification of two-wheeled and three-wheeled vehicles, gradually realize the full substitution of passenger vehicles and commercial vehicles, and initially start the construction of lithium battery energy storage power stations and the repair of lithium batteries, as well as the recycling and antifouling treatment of waste batteries.

If Chinese-funded enterprises can make a qualitative breakthrough in battery technology, the development and production of lithium batteries in India will be a very big market. On the one hand, it is the policy support of the Indian government. On the other hand, it is said that the Bombay Branch of the Bank of China is also strongly supporting Chinese enterprises to invest in new energy resources in India financially.

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