The government is planning to make emission standards stringent to discourage the production and purchase of vehicles that are fitted with internal combustion engines(ICE).
NITI Aayog has proposed the mandatory sale of two and three-wheelers Electric Vehicles(EVs) from 2025 but the industry representatives have resisted the shift towards EVs.
The government officials are planning of tightening the CAFE (corporate average fuel economy) norms to compel the industry to invest more in electric vehicles.
CAFE standards aim to improve the fuel efficiency of the automobiles in the wake of rising costs of importing oil led by an increasing demand for fuel primarily by the automobiles.
The government is also finalising to fix targets by regulating carbon dioxide emissions and fuel efficiency for automakers.Among the options being explored is to mandate limits and targets for vehicle emission intensity by every vehicle for automakers.
Besides,the government is looking to focus more on polluter pays principle which will make ICE vehicles less attractive for buyers through higher taxes and registration and other charges.The money raised via this route is proposed to be used to incentivize the EV sector.
Further,to make the EVs more attractive incentives such as registration fee waiver and removal of requirement for permits for commercial vehicles have already been notified.The Centre has also asked the states to lower the road tax paid by EVs.
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