As the US Congress gears up for final votes today on a bill that includes a complete overhaul of Washington's clean vehicle policies, US automakers and dealers are frantically trying to determine if they can still offer $7,500 (roughly Rs. 5,97,000) tax credits to prospective buyers of electric vehicles (EVs).
The $7,500 (roughly Rs 5,97,000) electric vehicle tax credit would be replaced by incentives meant to increase battery and electric vehicle manufacturing in the US under the $430 billion (roughly Rs 34,23,000 crore) climate, health care, and tax bill that the US House of Representatives was scheduled to vote on Friday.
Manufacturers, retailers, and customers lack information on many fundamental issues about how the new rules will affect the way clean vehicles aimed at consumers - including fully electric and hybrid models - will be bought, sold and built, automakers, consultants and lobbyists said.
However, suggested incentives of up to $40,000 (approximately Rs. 31,84,176) per vehicle for bigger commercial electric cars, such as Tesla's Semi or electric commercial vans produced by many manufacturers, received more positive feedback from industry executives.
According to RJ Scaringe, chief executive of Rivian, which has a contract to deliver up to 100,000 huge trucks to shareholder Amazon, the measures in the Inflation Reduction Act represent "a tremendous tail wind in the commercial area."
According to John Loehr, managing director at consulting firm AlixPartners, the legislation presents "a dramatic change in value chain needs, in a very short amount of time, that affects a sector whose supply chain development...is measured in years."
