INTERVIEW
Gaurav Batra is the Global Advanced Manufacturing & Mobility Analyst Leader at EY and a recognised expert in the future of mobility , particularly in EVs and the automotive market . His career includes extensive experience in growth strategy , market entry and business plan analysis . Gaurav has led international teams , worked closely with senior client stakeholders and enhanced EY ’ s service offerings . He holds a Bachelor ’ s degree in Commerce from Delhi University and an MBA from the International Management Institute in Delhi , India . EY provides strategic consulting and advanced technologies , such as ERP and MES , to support the EV industry , helping manufacturers and suppliers navigate this critical transition .
WHAT ARE THE VIABLE OPTIONS FOR REPLACING LOST REVENUE FROM FUEL TAXES ? The frontrunner appears to be distancebased taxation , or ‘ road usage charges ’ ( RUC ). The model is relatively simple : drivers pay based on how much they use the roads , whether they drive a personal car , an SUV or a commercial truck . The approach moves away from traditional petrol taxes that indirectly covered road use during the era of internal combustion engines ( ICE ). Other proposals include :
• Raising existing fuel taxes for ICE vehicles
• Increasing registration fees for EVs
• Implementing new tolls
“SOME GOVERNMENTS ARE ALREADY FEELING THE PINCH OF REDUCED FUEL TAX REVENUES AND ARE TESTING NEW STRATEGIES ”
In the US , Oregon is considering indexing taxes and fees to inflation . Currently , 24 states and the District of Columbia have variable-rate fuel taxes that adjust with inflation . The method has a short implementation timeline , low collection costs and good revenue potential . Indexing taxes to the Consumer Price Index could yield additional revenue without introducing new taxes .
Other ideas , like taxing electricity usage to charge EVs , might sound straightforward but require a significant infrastructure upgrade , such as installing smart metres and overhauling existing charging systems . Germany is already exploring this , but could it be practical on a global scale ? There isn ’ t a one-sizefits-all solution ; different countries will need different approaches and what works in one might not work in another .
32 November 2024