Interim Budget 2024: Auto industry expects further boost for EVs

In the upcoming interim budget, the automakers and industry stakeholders are expecting more impetus on the electric vehicle (EV) segment from the finance minister. The industry that has witnessed steady growth in the past one year, especially in EV sales is putting its faith on the government’s intentions to reduce carbon footprint.,

“The visionary stance of the Union Budget 2023-24 towards sustainable mobility played a pivotal role in the successful realisation of the target of 1 million electric two-wheelers, providing crucial support to the industry. Looking ahead to the Union Budget 2024-25, there is anticipation for a further boost in support for Electric Vehicle (EV) infrastructure in the country,” says Yatin Gupte, Chairman & Managing Director, Wardwizard Innovations & Mobility Ltd. “Additionally, hopes are high for increased financing opportunities, propelling research and development to a larger scale. This, in turn, would open doors for substantial investments in the ecosystem, accelerating India's overall adoption of electric vehicles. A crucial aspect lies in the call for added incentives specifically directed at Indian original equipment manufacturers (OEMs), aiming to stimulate advancements in localising EV technology, fortifying the indigenous industry, and contributing to a more self-reliant and progressive economic landscape for the industry.”

According to Rohan Shravan, founder and CEO of Tresa Motors, the government’s commitment to sustainable mobility and emission reduction is commendable. “The key focus is on the FAME scheme, which provides crucial subsidies for electric vehicles. With FAME II subsidies likely to be exhausted this year, the proposed Rs 40,000 - 50,000 crore for FAME III to cover more EVs is a positive step. Continued government support is vital for the transition to sustainable mobility. As advocates for this industry, we align with the ministry’s direction and are dedicated to collaborating with the government to realise this vision. Our request would be to incorporate incentives for the EV Heavy Commercial Vehicle and EV component manufacturers as well,” he says.

Greg Moran, CEO and co-founder of self-drive car rental company Zoomcar says, last year’s budget paved a path to higher adoption of EVs in India resulting in a sharp shift of customer mental models to make more greener & smarter choices. “With the rise of marketplaces and digitisation in India, it is becoming a convenience first nation that is also setting high benchmarks globally. This year, we anticipate the Union Budget 2024 to pave the way for innovative policies that accelerate sustainable mobility solutions and drive economic resilience, which will help customers with cost effective solutions and mobility apps to support the evolution of transportation in the automobile industry.”

According to Gaurav Aggarwal, CEO and Founder, CarLelo, (A Capri Loans Venture), the landscape of online new car sales has experienced a substantial surge over the past 4-5 years, driven by an increasing preference for consumers buying cars digitally. “We look forward to the Union Budget introducing measures that not only support the growth of the electric vehicle industry but also contribute to a more sustainable and eco-friendly future.”