Auto industry body SIAM on Thursday asked the government for long-term policy for promoting electric mobility in the country, saying absence of such guidelines is not helpful to the industry to plan future investments.
The auto industry body also sought lower taxation for the vertical in order to help it realise its true potential.
Speaking at the annual convention of Society of Indian Automobile Manufacturers (SIAM), outgoing president of the body Abhay Firodia regretted the government’s decision to stay away from framing an electric vehicle (EV) policy.
“After the earlier significant announcement favouring large-scale electrification of vehicles in the country, in an unexpected way, the government came out and stated that it will not be issuing a formal policy promoting EVs, but rather rake specific actions to enable proliferation if EVs in the country,” Firodia said.
At the request of the government, SIAM had proposed policy measures for 40 per cent electrification by 2030 and 100 per cent by 2047, he added. “However, the government stepped away from laying down a long-term approach, and... this is not very helpful for the industry. Laying down clear objectives will help the industry prepare for future investments,” he said.
EVs cannot be just out in the market, they require infrastructure and a complete ecosystem, he added.
“I therefore see it more as a challenge for transformation, which needs to be gradual.” Sudden moves could disrupt (the industry) and such disruption can seriously hamper Make in India aspirations, Firodia said.
Firodia added that in 2011 too, the industry had submitted a proposal to bring policy for electric mobility.
“I just want to emphasise that the industry does not oppose EVs... I can assure you that the industry will not be found wanting in delivering competitive and technically viable EVs if there is a clear policy that addresses consumers... and also the manufacturers,” Firodia noted.
He said that implementation of goods and services tax was a watershed moment which the auto industry was looking forward to for a long time. The very high proportion of tax does not allow the industry to grow to its full potential, he added.