The Centre lowered customs duty on import of parts and components of such vehicles to 10-15 per cent. So far, vehicle parts and components imported for assembly in India attract import duty of 15-30 per cent.
Batteries today cost up to 40 per cent of the total cost of electric vehicles (EV) and for the EVs to become more feasible for the end user, the cost of the battery has to come down along with a reduction in charge time.
EV charging infrastructure is required to boost EVs in the country. India intends to have a sizeable share of EVs in the vehicle strength by 2030, which is in line with its commitment to reduce emission intensity by one third from the level of 2005.
Suzuki said the company has decided to launch EV in India around 2020 in cooperation with Toyota Motor Corporation. It will commence production of lithium-ion batteries, used in electric-vehicles, at its Gujarat plant in 2020.
The expected transition towards electric mobility necessitates attention and action by several sectors and stakeholders, according to a latest EY report on the building blocks for a sustainable EV ecosystem.