Electric Vehicle News Society of Manufacturers of Electric Vehicles (SMEV) has urged the government to impose an additional green tax on two-wheelers with internal combustion engines (ICE) to increase the adoption of electric vehicles (EVs) and reduce crude oil imports.
The industry body representing electric vehicle companies said in a statement that subsidies on electric vehicles have come down since the beginning of this month, so the green tax will arrest the expected decline in EV sales.
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SMEV believes that there is a need to increase the tax on polluting conventional ICE two-wheelers by one per cent to finance the subsidy for electric two-wheelers and bring the FAME scheme back on track.
Sohinder Gill, Director General, SMEV, said it is time the EV sector was allowed to compete with ICE vehicles. Gill said that as an industry we are grappling with issues of awareness and acceptance, but the biggest challenge in the case of EVs is cost, which India is a very price sensitive market.