‘Want continuity of govt policy supporting EVs for next 8-10 yrs’
Mercedes-Benz India wants the government to commit to continuity in policies that support electric mobility for the next eight to ten years, for stable and better planning towards zero emission mobility, its Managing Director and CEO Santosh Iyer said on Tuesday.
Besides, the company feels that providing the incentives given to electric vehicles to hybrid vehicles will extend the timeline for transition to emission free mobility.
The company, which had increased EV penetration to 6 per cent in the first quarter of 2024, from 2.5 per cent earlier, expects the momentum to carry going forward with three new EV models slated for launch this year, starting with the EQA next week.
"A much more clear roadmap when it comes to taxation on EVs," Iyer told PTI here when asked about the company's expectations from the upcoming Union Budget.
"We understand that the Budget may not address the GST topic, but at least if you are able to get a commitment that for the next eight to ten years, this kind of taxation benefit will continue, this will really help brands like us to plan long term and have more commitments when it comes to investments for the EVs," he said.
For electric vehicles, the government has already given 5 per cent GST compared to 48-50 per cent on internal combustion engines, Iyer added.
Highlighting investment on infrastructure as another key aspect, he said, "One of the biggest drivers for our growth has been the growing road infrastructure and intercity road infrastructure that has come up in the last couple of years."