CO2 reduction has become one of the global agendas across the world. The more innovative ways are used to address the concerns, the solutions can be more effective:-
- Vehicles bought by consumers need to meet various needs
The needs are different for consumers in different regions. The vehicles on road as per the preferences of the various regions show interest in sport utility vehicles, vans, and pickup trucks whereas in other regions, smaller and fuel-efficient vehicles due to restrictions in space and fuel prices are high.
- Consumers can afford vehicles
CO2 reduction is important but the automobile industry needs to use technology in vehicles to address the affordability and readiness in the market. It is needed that vehicle expectations are met by the consumer and afford a new vehicle to trade off an old one.
- Necessary political and fiscal surroundings in a stable and predictable environment
Usually, a new automobile model goes through around 5 to 7 years of development and testing stages before being launched in the market. The market cannot be predictable for the future or any new technology breakthroughs. Years of planning are very much needed for automobile manufacturers.
Hence, a large amount of freedom is needed for government activities to further cut the CO2. Freedom is possible by not restricting measures for certain technologies or in the technology field.
- Obligatory action across the world is needed
A global problem needs global approaches. The tax policies are taken into consideration with a global approach for different countries to reduce carbon taxation. The procedure can help manufacturers across the globe to solve the problem in a coordinated manner.
Tax policies that savings accounts for every gram of CO2 across the world are worth saving.
Source:- OICA (International Organization of Motor Vehicle Manufacturers)