• Cheaper hybrid cars, tighter fuel economy norms for India

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    India’s Union Minister for heavy industries and public enterprises, Vilasrao Deshmukh recently announced that the government is considering the possibility of reducing import duties on hybrid vehicles (and possibly electric cars as well?) and the finance ministry will be presented with a proposal regarding the same, in the near future.

    The proposed reduction in duties for hybrids is being considered to promote the use of eco-friendly vehicles that are low on emissions. Until now, Honda is the only manufacturer to have sold a hybrid car – the Civic Hybrid – in India, though in very limited numbers only. Toyota plans to launch the Prius Hybrid in India in 2010 and General Motors has tied-up with RECC, to build an electric version of the Spark, which is also expected to be launched next year.



    To encourage domestic car manufacturers to build hybrid vehicles, the Indian government has also initiated its Hybrid Propulsion Programme, under which manufacturers like Maruti, Tata Motors and Mahindra may work together to develop automotive hybrid technologies.

    From 2011, the government is also looking at implementing tighter norms and standards for fuel efficiency for cars. ‘We are right now engaged in finalising administrative formalities on how these standards have to be notified, either through the Energy Conservation Act or the Motor Vehicles Act,’ says Environment Minister Jairam Ramesh.

    According to some estimates, the transport sector is responsible for about 15-20% of the total greenhouse gas emissions in India and the government is looking at all possible ways of reducing this figure. Given their current rate of growth, automobiles could be contributing as much as 25% of total green house gas emissions in the country by the year 2030, hence the government is looking at ways of promoting hybrids and EVs in order to keep emissions in check.

     

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