Will EVs Become More Affordable? Budget to Provide Relief? 5 Key Reasons
Will EVs Become More Affordable? Budget to Provide Relief? 5 Key Reasons.
In recent years, India has seen notable advancements in the electric vehicle (EV) sector, which is growing at a rapid pace. The government is focusing on this industry to enhance green energy initiatives and support environmental sustainability.
As a result, there are significant expectations for the upcoming budget concerning the EV market. Various companies within the sector have shared their requests and recommendations with the government. It is crucial for the government to implement effective measures to ensure the EV industry becomes self-sufficient and sustainable.
EV manufacturers are advocating for increased investments in research and development, higher subsidies, and incentives for establishing EV production facilities. Moreover, there is a call for a more streamlined GST framework and tax benefits for loans taken to purchase electric vehicles.
Battery manufacturing plays a critical role in the EV landscape. There is a strong push for the implementation of the Production-Linked Incentive (PLI) scheme to boost domestic battery production. Companies such as Maxvolt Energy are urging for more financial support and tax incentives to enhance battery production and R&D efforts.
Shalya Gupta, the CEO of Credifin Limited, mentioned that the government could consider issuing green bonds to enhance the development of EV infrastructure. Furthermore, implementing long-term subsidies could provide a significant boost to EV production.
Under the FAME-II scheme, subsidies are currently offered after the purchase of electric vehicles. There are expectations that the upcoming budget will broaden the scope of this scheme and establish new targets, which would stimulate sales of both private and commercial EVs.
One of the primary requests from EV companies is to lower the GST rate on EV batteries from the current 18 percent to 5 percent. This reduction would decrease the overall cost of electric vehicles, making them more accessible to consumers. Additionally, there is a call to lower interest rates on loans for EV purchases, which would facilitate financial support for buyers.
For the widespread adoption of EVs in India, robust charging infrastructure is essential. Companies like Oben Electric have urged the government to take action in this area. It is anticipated that the budget may introduce special funding to establish and maintain charging stations.
