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Why Electric Vehicle is the new interest in the automobile market

Published Tue, Dec 21 2021 06:10 am
by The Silicon Trend

 

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Why Electric Vehicle is the new interest in the automobile market?

Electric vehicle (EVs) sales have increased, with significant growth in all top 3 automobile markets - Europe, America and China. Sales surged by 160% in the first half of this year to 2.6Mn units, highlighting 26% of new global sales in the market. These vehicles are more efficient, having a safer-environmental side than ordinary gas-powered vehicles.

With people shifting to work from home from last year during the pandemic lockdown, people started spending more time in their respective areas, discovering the pleasure of clean atmospheric air. Non-ICE vehicle buyers mentioned that the pandemic has resulted in environmental awareness, and these issues have kick-started to buy sustainable vehicles - the EV.

 

 

Tax Benefits in India

Petrol and diesel rates have been hiked, pushing pumps across India to their highest-ever price. Petrol is above Rs. 100 in all major cities, while diesel has crossed that level in more than 12 states. The price hike has resulted in more customers investing in budget-oriented EVs and having tax benefits.

To motivate EV use, the Indian govt introduced a new section that spared vehicle buyers from paying taxes. Buyers who opt to obtain an EV loan will be granted an Rs. 1.5 lakh tax reduction on interest paid under Section 80EEB.

 

 

Huge Investment in EV Sector

Over the next 5 years, we might witness the EV make an investment of Rs. 94,000Cr across the automotive chain value, with Tamil Nadu being the frontrunner - 34% share in total planned EV investment, followed by next-in-line by Andhra Pradesh and Haryana - shares 12% and 9%. Apart from Ather Energy and Ola Electric, other firms signed MoUs with the Tamil Nadu government in setting up EV facilities - Zion International, TVS Motor Company, Simple Energy, Magenta EV Solutions, and others.

CEO, India and MD, market development, Asia, Colliers - Ramesh Nair said, Indian govt aims to achieve EV sales of 30% by 2030. The transport industry is the 3rd largest CO2 emitter; therefore, EV can change the plot. Real estate players can hop into charging stations, manufacturing, dealerships, warehouse of EVs. The govt is motivating automotive developers to increase EV production to minimize the leveraging of crude oil. However, it needs to deduce the permits needs for the manufacturing set-up and offer certain tax compromises to the private sector for EV charging infrastructure.

 

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Image source: Unsplash.com