Union Budget 2019 reaction: Reduction in loan interest will encourage customers to make a switch from ICE vehicles to EVs - Hero Electric
Finance Minister Nirmala Sitharaman presented the Union Budget 2019 today. The Budget 2019 covered the topics of efficient public transportation, alternate methods of commute for commercial vehicles, national transport card for universal payment of tolls, tickets for road and rail and retail shopping. It also covered the national highway development plan that will further improve connectivity in the country. Here's a detailed reaction from Naveen Munjal, Managing Director of Hero Electric.
"The electric vehicle industry needed a substantial boost & support from the government and we welcome the government's recommendation of reduction of GST on EVs from 12% to 5%. In addition to this, income tax reduction of up to Rs 1.5 lakh on the interest paid on EV loans is an extremely positive move which will encourage customers to make a switch from ICE vehicles to EVs. Reduction in custom duty on lithium-ion cells would help local component manufacturers in scaling up the production thereby further reducing the overall upfront cost of electric vehicles in India. Government's continued emphasis on FAME II initiative and strengthening of EV infrastructure will definitely encourage manufacturers to further invest in the ecosystem thereby lowering both crude oil imports and air pollution leading to a cleaner and greener future.
We are confident that such directives will boost up the rate of EV adoption in the country and will act as a catalyst in the government's aim of faster adoption of electric vehicles and higher level of localization under the 'Make In India' initiative."