Society of Manufacturers of Electric Vehicles (SMEV) on Tuesday urged the government to formulate a unified policy of road tax exemption for Electric Vehicles (EVs) across the country. In a letter to the Union Road Transport and Highways Minister Nitin Gadkari, SMEV said a consistent and favourable policy environment is essential to accelerate the shift towards electric mobility in India.
«I am writing to request your esteemed office to weigh in on a unified policy of road tax exemption for EVs that will play a pivotal role in encouraging the adoption of clean and sustainable transportation options, which is vital for our nation's environmental and economic future,» SMEV Chief Evangelist Sanjay Kaul wrote.
In July, SMEV had named Kaul as its Chief Evangelist to help revise the association's agenda.
In view of the Ministry of Heavy Industries' decision to reduce the subsidy component mid-way through the FAME II scheme, this input (unified policy of road tax exemption for EVs) from the government would become even more relevant and critical, he stated. Road tax and registration fees aren't just bureaucratic formalities; they're pivotal factors influencing the rise or fall of EVs, Kaul said.
«These fees can act as either a carrot or a stick, nudging consumers toward greener choices or pushing them back into the arms of traditional gas-guzzlers. EVs often carry a heftier price tag due to their advanced battery systems, so these extra upfront costs can be the tipping point that deters would-be buyers,» he said.
The patchwork of road tax policies across states is a roadblock to the EV revolution, Kaul said.
While some states like