Words like eco-friendly, environment friendly are the buzz of the town. Perhaps, the entire world is looking forward to adapting to a much more eco-friendly lifestyle. Automakers too are trying to contribute to this. One such contribution is the development of electric vehicles. Recently, the demand for electric vehicles in India slumped, thanks to the end of the subsidy provided on them. Still, hope continue to linger in the minds of the manufacturers who are waiting for the new scheme to be launched. This was the India Story.
Let us now move to the China story. The Dragon country is trying to cut down its carbon emmisions. One of the steps it has taken is to develop the energy-saving vehicles and plans to invest 2 billion Yuan ($315.06 million) for the same. Also, a major plan focuses towards setting up charging stations across locations. The demand for these vehicles is quite good in the country. Perhaps, a lot of schemes have been introduced which led to this demand.
Now, the country is considering tax-exemptions and subsidies for buyers of these vehicles. As mentioned earlier, such plans are not new in China. In 2009, Beijing introduced similar scheme with tax incentives for cars with engine sizes of 1.6 liters or smaller and subsidies for rural residents. This indeed was a hit and the car sales showed tremendous growth. As per the latest plan, the buyers of electric vehicles will get rebates and there could be reduction in value added tax and the buyers from rural areas will get subsidies. The new plan also mentions that the buyers will be exempt from vehicle purchase tax. Well, looks like China is all set to change the auto sector and India should take some cues from it