The Swedish automaker Volvo Cars is keen to expand its cleaner transport solutions in India for which the company is seeking incentives for hybrid vehicles.
Volvo Cars Group Senior VP Paul Welander told PTI that in order to do better business in India, getting incentive for e-vehicles would be great for Volvo. Sops for such eco-friendly vehicles can help the company drive in more such products into the country when the government is already pushing for environmental-friendly vehicles, he added.
Expressing his concern over the prevailing high tax structure in India Welander said India also needs to be competitive when it comes to import duties. He strengthened his point by citing examples of China and the US where duty structure are much lower and that India should also be competitive enough to catch up with the changing pace.
The spokesperson informed PTI that Volvo Cars is also considering engine assembly line at its Bengaluru plant to reduce import duties.
The current taxation system in the country does not provide for any benefit for hybrids and plug-in hybrids, which is a major concern for the auto major. Under the current system, passenger vehicles (PVs) attract the top GST rate of 28 percent with cess ranging from 1 percent on those under four metres with petrol engines, to 22 percent on big SUVs which are longer than four metres. Hybrid vehicles have an overall tax incidence of 43 percent (28 percent peak GST rate plus 15 percent cess).
Globally, Volvo Cars has announced that every vehicle it launches from 2019 will have an electric motor and is aiming to have one million electrified cars on roads by 2025.
