Electric Vehicle Industry Urges FM Sitharaman for Key Budgetary Changes

The Indian electric vehicle industry is eagerly anticipating the upcoming budget, urging Finance Minister Nirmala Sitharaman to introduce key changes that will propel the sector towards sustainability and growth. Industry players emphasize the need for continued support, including the extension of the FAME scheme, GST parity for EV batteries, and various financial incentives.

Key Features

1. Unified Call for Continued Support
2. Financial Incentives and Accessibility
3. Infrastructure Development
4. Long-Term Growth and Sustainability
5. Industry Collaboration and Transformation

Hyder Khan, CEO, Godawari Electric Motors

• Optimism for increased support in the budget towards the electric mobility sector.
• Stresses the importance of extending and enhancing the FAME scheme for a sustainable future.
• Substantial subsidies for EVs and related infrastructure to incentivize consumers and stimulate industry growth.

Akash Gupta, Co-Founder and CEO, Zypp Electric

• Prioritizing the EV sector is crucial for a sustainable future.
  Inclusion in the priority lending scheme for easier access to capital.
• Calls for a reduction in GST for EV services to accelerate the adoption of EV-led delivery services.
• Proposes introducing usage-based incentives for EV drivers to encourage sustainable choices.

Niranjan Nayak, MD, Delta Electronics India

• Acknowledges the government's efforts in promoting EV adoption.
• Calls for continued incentives and subsidies for manufacturing and purchasing EVs.
• Highlights the need for a widespread charging infrastructure network and reduced import duties on EV components.

Arun Sreyas, Co-Founder, RACE Energy

• Emphasizes the pivotal role of battery swapping in EV growth.
• Expects GST parity for EV batteries used in swapping to align with the 5% bracket.
• Awaits clarification on the registration process and subsidy mechanism for battery swapping vehicles under the FAME scheme.

Avinash Sharma, Co-Founder & CEO, ElectricPe

• Hopes for an equitable landscape with subsidies and incentives across states and the center.
• Welcomes the extension of FAME 2 to FY 25 as a positive sign for industry development.
• Urges a reduction in the GST rate on batteries from 18% to 5% and calls for parity in the GST rate for charging across states.

Samarth Kholkar, CEO and Co-Founder, BLive

• Anticipates the inclusion of the EV sector in Priority Sector Lending (PSL) for more accessible financing options.
• Expects the extension of subsidies to enhance EV affordability and incentives for conversion kits.

Narain Karthikeyan, Founder & Managing Director, DriveX

• Recognizes the potential benefits from individual taxation reforms for the two-wheeler auto industry.
• Hopes for tax incentives or reductions to boost demand for pre-owned two-wheelers.

Charith Konda, Energy Specialist, IEEFA

• Calls for the extension of FAME II subsidies to medium-duty trucks and tractors to drive electrification in rural areas.
• Advocates for uniform GST rates across the EV supply chain to lower the cost of EVs.
• Suggests according priority sector lending status for EVs and EV infrastructure to increase credit flow and reduce the cost of funds for the sector.

CarBike360 Says

The electric vehicle industry's key players collectively emphasize the importance of continued government support through initiatives like FAME scheme extension, GST parity, and financial incentives. Their statements reflect optimism, recognition of industry growth potential, and a strong desire for budgetary changes that will foster sustainability, innovation, and economic development in the electric vehicle sector. The verdict suggests a unified call for a comprehensive and supportive budget to accelerate the growth of the electric vehicle industry in India.

Also Read: Carbike360 Forecast: Key Insights into the Auto Industry's Outlook for Budget 2024