Following some gladdening relief announced in the latest budget by the government, the electric car makers are sharpening their tools to play more. This will reflect the fall in the prices in the month to come. The Union Finance Minister reduced the customs duty- from 24% to 4%- levied on import of components for such vehicles.(however the countervailing duty of 4%will continue), said the official from Society of Manufacturers of Electric Vehicles. The Director-General of SIAM said that this move is a positive sign in promoting green budget.
The excise duty imposed on it, to 4%, is welcomed by the industry on the basis of availing MODVAT benefits. This will enable the makers to deduct the excise duties paid for indigenous components from the overall excise on the vehicle. It is believed that the hike in the excise duty for vehicles on fossil fuels is certain to have an impact on the net price of both the vehicle and the fuel. This will be a boost to the popularity of Electric vehicles.
The President&MD of General Motors praised this relief and seeks more such measures to promote alternative fuel vehicles. The company develops electric powertrain in a tie-up with Reva electric car company of Bangalore. GM’s first electric car will be Chevrolet Spark.