SMEV seeks tax incentives, other financial support in Budget

New Delhi: The Society of Manufacturers of Electric Vehicles (SMEV) has sought from the government subsidies, tax incentives and easy credit in the upcoming Union Budget to boost the growth of the sector.

The Budget, scheduled to be presented on February 1, is expected to create a favourable and stable policy environment to achieve India's electric vehicle target and revive the industry, Sohinder Gill, Director Corporate Affairs, SMEV said in a statement.

Demanding support in the Budget, he said the industry is currently moving at a "snail's pace" and is far from the target of 6-7 million electric/hybrid vehicles by 2020.

"It will gather the desired momentum with support from the government, in the form of subsidies, tax incentives and infrastructure development," he added.

He said electric vehicles should be exempted from 6 per cent excise duty and automobile cess has to be done away with.

"The upcoming Budget must consider lowering the interest rate for electric vehicle loan for buyers and reducing the prime lending rate for electric vehicle industry at easy interest rate for setting up factories, to enable mass manufacturing," he added.