Budget 2020: Modi government aims to make India a hub of electric vehicles. The Centre even announced a series of measures to this end including a $1.4 billion worth manufacturing hub. This constant push from the administration is estimated to make India the fourth-largest market for EVs by 2040. However, there are still many hurdles that need to be overcome. As the Finance Minister takes on the stage to present the Budget 2020, EV manufacturers would be hoping for a few measures.
EV manufacturers would hope for policy changes as well as easy finance and reduction of GST on batteries. As per reports, the industry wants the government to provide easy finance for electric vehicles. Easy financing of electric vehicles would increase the demand for the environment-friendly vehicles.
Apart from private buyers who put up their vehicles under commercial use, the EV industry also wants the government to incentivise private buyers of electric and hybrid cards. This would increase the sale of electric as well as hybrid vehicles.
FULL COVERAGE:Union Budget 2020
One of the biggest pain points for the EV industry in India is the import of lithium-ion batteries. The lack of lithium resources has pushed the manufacturers to import lithium chemicals from China. The industry wants the government to reduce GST on lithium-ion batteries to be reduced from 18 per cent to 5 per cent.
While the government is pushing for manufacturing of EV components, currently the industry has to depend on the Chinese imports. Material such as nickel, cobalt and battery-grade graphite are also imported. The industry wants the import duty on these components to be slashed in the Budget 2020. It must be mentioned here that the government had, in fact, hiked customs duty on imported products last year to boost local manufacturing.
Ola Mobility Institute told the daily that earmarking funds for research and development (R&D) on electric vehicles industry could also go a long way in boosting the industry.