Electric Vehicle industry seeks boost in Union Budget 2024-25

With the Union Budget approaching on July 23, the Indian electric vehicle (EV) sector is buzzing with anticipation. Industry leaders are urging the government to implement measures that can propel the sector forward.

Focus on affordability and infrastructure

A key demand is for policies that make EVs more affordable. According to the media sources, players like Praxis Global Alliance's Aryaman Tandon believe government support is crucial to bridge the price gap between EVs and traditional vehicles. Extending and potentially expanding existing subsidy programs like FAME is seen as a significant factor. Evera CEO Nimish Trivedi highlights the success of FAME-II in driving EV adoption and emphasizes the need for its continuation.

Industry Wishlist for Budget 2024

• FAME-III rollout: The industry eagerly awaits the launch of FAME-III, the next iteration of the government's EV promotion scheme. They propose including private buses and commercial vehicles in its ambit.
• Charging infrastructure boost: A robust network of charging stations is considered vital. Increased investment in this area is a top priority.
• Incentivize localization: Industry leaders advocate for policies that encourage local manufacturing of EV components. This can bring down costs and create a self-reliant ecosystem.
• Renewable energy integration: Several stakeholders recommend integrating EVs with renewable energy sources for a cleaner and more sustainable transportation future.
• Priority lending scheme: Inclusion in a government-backed priority lending scheme would make financing EVs easier for potential buyers.
• GST reduction: Reducing the Goods and Services Tax (GST) on EV components and services is another key demand. This would make EVs more price-competitive.

Focus on specific segments:

Industry leaders like Bharath Rao of Emobi propose prioritizing the high-volume electric two-wheeler segment in FAME-III and the budget. Akash Gupta of Zypp Electric emphasizes the importance of including electric delivery vehicles in policy benefits and reducing GST for related services, according to reports.

Long-term vision:

Looking beyond immediate needs, industry leaders like Hyder Khan of Godawari Electric Motors and Ayush Lohia of Lohia call for initiatives that support domestic EV manufacturing, research & development, and a comprehensive policy framework for EV parts.

Addressing global slowdown:

The slowdown in global EV sales serves as a cautionary tale. Leaders acknowledge the need for targeted government support to overcome challenges like high upfront costs and limited charging infrastructure.

By implementing these measures, the government can play a pivotal role in accelerating India's transition to a greener transportation future powered by electric vehicles.