Author: Reuters

The European Commission gave a guarded welcome on Thursday to guidance by the United States meaning that EU companies could partially benefit from the U.S. Inflation Reduction Act, but said further improvements were required.

The European Commission gave a guarded welcome on Thursday to guidance by the United States meaning that EU companies could partially benefit from the U.S. Inflation Reduction Act, but said further improvements were required. The $430 billion green subsidy law, which grants tax credits for buying U.S.-produced electric vehicles (EVs) and other green products, has triggered fears it could make the United States a world leader in the EV market at the expense of European countries. The Commission, which coordinates trade policy for the 27-nation European Union, said the U.S. guidance, published on Thursday, showed EU producers could benefit from tax credits for sales to commercial operators, but their vehicles would not be eligible for such credits when sold to private consumers.

The U.S. Treasury Department said Thursday that electric vehicles leased by consumers starting Jan. 1 can qualify for up to $7,500 in commercial clean vehicle tax credits, a decision that makes those assembled outside North America eligible.

India's Avon Cycles Ltd has denied any wrongdoing in a scheme granting subsidies to vehicle manufacturers to boost the sale of electric vehicles (EV), after the government said the company was among those being investigated for misappropriation. The Indian government is reimbursing electric vehicle and hybrid vehicle manufacturers for reducing the purchase price of their vehicles under the Faster Adoption and Manufacturing of Electric Vehicles in India (FAME) programme. Complaints were made against 12 electric vehicle and parts manufacturers, including Avon Cycles, for violating guidelines under the 100 billion rupees ($1.21 billion) programme, Minister for Heavy Industries Mahendra Nath Pandey told parliament on Tuesday.

Indonesia may allocate 5 trillion rupiah ($320.41 million) from next year's budget to incentivise electric vehicle (EV) purchases, though details of the scheme were still being finalised, a senior minister said on Wednesday. Last week, Industry Minister Agus Gumiwang Kartasasmita said buyers could get a discount of 80 million rupiah for EVs made by firms with factories in the country, as well as other incentives for hybrid cars and electric motorcycles. Airlangga Hartarto, Indonesia's chief economics minister, said at a news conference on Wednesday that authorities are detailing how much they could provide per sale based on the budget allocation.

General Motors Co said Tuesday it is recalling 140,000 Chevrolet Bolt EVs in North America because the carpet could catch fire after a crash where a front seat belt pretensioner deploys.