The Indonesian government is encouraging car makers to work toward developing cars that are eco-friendly, fuel-efficient and affordable. Considering the harmful effects of carbon and pollution on the environment, the government has taken initiatives to lower the injurious consequences. Fiscal incentives will be provided to the car makers in order to help them produce low-cost eco-friendly cars by 2012. The administration plans to cultivate a business climate beneficial to these efforts by supporting regulations and importing tariffs.
Obstacles in the way of green cars:
The main aspect acting as an obstacle in the way of eco-friendly car makers is finance. Making low-cost fuel-efficient cars, which at the same time release less carbon emissions, is little tricky, as it requires a lot of capital. Car manufacturers have long said the lack of incentives was to a certain extent responsible for making eco-friendly automobiles relatively more expensive than ordinary cars. Eco-friendly cars like hybrids cost above Rp 550 million each, which is relatively higher than the cost of a multi-purpose vehicle (MPV) for instance that ranges from Rp 100 million to Rp 250 million.
Fiscal incentives could help car makers go green:
Green cars could bring a revolutionary change into our lives and the environment. However, developing these green cars requires a large amount of money, so car manufacturers urged the government to give them incentives to produce low-cost eco-friendly vehicles. As a result, the government has decided to provide fiscal incentives to the car makers, helping them develop low-costing eco-friendly cars. This initiative will not only reduce the carbon emissions and pollution but will also help in bringing down the cost of the green cars.
Technology advancement way to greener cars:
With the advent of new and improved technology, the automobile industry has come a long way. We can hope to see a larger number of greener cars with the advancements that are witnessed in technology with each passing day. This improvement will assist to make low-cost eco-friendly cars a reality.
