The EV sector is the hot property in the automobile industry and it also has the potential to give the Indian economy a good push ahead. State and Central governments are already trying to nudge the industry forward using FAME scheme and state-level subsidies. However, there's much more to be done for an industry that has recorded over 200% growth in the last year. Here's what the EV sector is demanding from the Union Budget 2023.
Maxson Lewis, Founder and Managing Director, Magenta Mobility: "We expect the budget to extend the Corporate Tax Benefits for Infrastructure companies and reduce the GST from 18% to 12% for the Logistics sector. This GST reduction will go a long way in managing the inverted GST impact ailing the EV logistics sector.
Another key aspect is making finance easy for EVs. This can be done by loan mandate to Govt sector banks and financial institutions. The government can see this as a kick start to a sustainable economy while driving demand for the automotive industry."
Pratik Kamdar, Co-Founder Neuron Energy: "In recent years, electric vehicles (EVs) have become increasingly popular in India owing to growing eco-consciousness, efforts to reduce dependence on fossil fuels, and rising fuel costs. The Union budget 2023 is expected to be a turning point for the sector. The EV industry is expecting a GST cut from 18% to 5% on lithium-ion battery packs and cells. The Indian electric vehicle (EV) sector, which mainly relies on batteries, would benefit if this transformation were to occur."
Mohal Lalbhai, Co-Founder and Group CEO, Matter: "The government launched several initiatives, including the PLI scheme, to enhance the country’s manufacturing capability. In India, the start-up ecosystem is leading the EV revolution from the front, but most of them have not benefited from the PLI scheme. PLI scheme can be made more inclusive, I am hopeful that government with award start-ups much-needed support in order to continue leading the EV revolution granting special incentives and subsidies, and relax regulatory norms to create a more favourable business environment."
Rahul Jain, Director, Crayon Motors: "Even when the EV sales have doubled in the last year, the industry still suffers from higher initial ownership costs of EVs, which is a direct result of higher input costs. We hope the upcoming budget will reduce GST on raw materials/components, thereby accelerating India's EV race. Because battery manufacturing in India relies heavily on imports, some duty relief could help reduce overall costs. EVs have fewer financing options and higher interest rates than ICE vehicles. The EV industry is hoping for a positive outcome from the government's meeting with the World Bank. Aside from the PLI expansion, other state government programs such as GEDA and central government initiatives such as "Atmanirbhar Bharat" would undoubtedly benefit."
Dr. Irfan Khan, Founder & CEO of eBikeGo: In Budget 2023, it is expected that the government will announce further measures to support the growth of the EV industry. This may include tax incentives for manufacturers, subsidies for charging infrastructure, and financial support for research and development of new technology. The government may also encourage to increase the use of EVs in government vehicles, which would be a significant boost for the industry."
Nitin Kapoor, Managing Director of Saera Electric Auto Pvt Ltd: "The industry stays optimistic that the government will consider reducing the GST on Advanced Chemistry Cell (ACC) batteries on par with EVs. To further enable a faster penetration of electric vehicles on Indian roads, the government needs to focus on lowering interest rates for EV financing and standardized residual battery value calculation. The government should also consider focusing on creating awareness about the vehicle scrappage policy to encourage the phasing out of end-of-life vehicles and drive EV sales. Considering the lack of enough charging points in the country, the 2023 budget should be focused on drafting strategies to create a robust EV battery charging infrastructure in the country with specific grants for research and development (R&D) of advanced batteries"
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today