A clear roadmap with stringent timelines and the setting up council for environmental-friendly cars, along with OEMs, could be a good place to start.
If ever there was a time for the Indian automobile industry to take stock and recalibrate its sustainability strategy, it is now.
Stricter emission norms, higher taxes, the lack of infrastructure such as charging stations and cleaner fuels, and the uncertainty of mainstream consumer demand for electric and hybrid vehicles, create several challenges for the Indian industry, as it identifies its environment impact strategy in the face of continued pressure to make a change.
Recent regulatory developments, including the ban on the sale of BS-III compliant vehicles a few months ago, which has left OEMs burdened with unsold stocks, are making things tough for the sector. In less than three years, BS-VI emission standards will come into force, even before companies recover their investments in upgrading to the current BS-IV emission standard. A surprising levy of 43 per cent under the new GST regime on hybrid vehicles has jeopardized the investments that some leading manufacturers had made for producing hybrid cars.
Adding to the confusion are reports about the government’s push to make electric vehicles mainstream in just over a decade. Against this constantly shifting backdrop, an ecosystem of interconnected partners is crucial for the auto industry to curb its impact on the environment.
To read entire article, please click here.
Source: ET Auto – GAI
