Lexus India backs carbon-based taxation system to promote electrification
As the carbon-based taxation system takes precedence across developed nations, Lexus believes that this should be considered in India as well so as to promote electrification and other green technologies that aim to reduce vehicular emissions in the long run, the company's top official told PTI.
In a carbon-based taxation system, there is a fixed price set on per tonne of carbon or carbon dioxide emitted to incentivise lower carbon emissions.
The luxury carmaker, which sells seven models in the Indian market, has rooted for a long-term policy roadmap in helping OEMs to commit investments on new technologies and products in a market. "We have seen in developed nations that carbon-based taxation has taken precedence over any other way to define vehicle taxation policies that we think solves many purposes," Lexus India President Naveen Soni told PTI.
He noted that while the government is looking to reduce emissions and control the fuel import into the country, the consumer is trying to get better technologies. “At the end of it, we also want to offer higher and better technologies, which have multiple pathways. So, if we can have that vision on carbon-based taxation system being crystalised then it gives confidence for us to again commit ourselves towards particular technologies," he added.
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Lexus recently completed five years of operations in the country and is now looking to consolidate its sales infrastructure and drive in new models, including fully electric ones. The Indian luxury car market was at a peak of around 40,000 units per annum in 2018 which got halved to around 20,000 units in the next two years due to Covid-19 related disruptions. This year, the market is expected to claw back to the 32,000-35,000 unit mark.