EV Industry
EV sector seeks incentives and tax rationalisation from Union Budget 2024: Report
New Delhi/IBNS: With Union Finance Minister Nirmala Sitharaman scheduled to present the Union Budget 2024 on July 23, India's electric vehicle (EV) industry is optimistic about potential announcements that could spur industry growth, reports ANI.
According to reports, the EV industry expects the introduction of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles in India (FAME) - III, funds for public charging infrastructure, incentives for localising components, and reduction of GST on EVs, among others.
Aryaman Tandon, Managing Partner at Praxis Global Alliance for the Mobility sector, told ANI that the EV industry hopes the FAME scheme will expand to include private buses and commercial vehicles (CVs), which have so far been limited to State Transport Undertakings (STUs).
"Reducing customs duties on imported EV components and supporting local R&D (Research and Development) in battery technology, as seen in the last budget, will further accelerate local manufacturing and create jobs,” Tandon said.
"EV adoption increased by 48 percent in 2023 primarily due to government subsidies like FAME-II," Nimish Trivedi, the founder & CEO of Evera, was quoted as saying by ANI.
The FAME Scheme, which was initially introduced in 2015, promotes electric and hybrid vehicle adoption in India and has completed two terms; FAME-I and FAME-II, as per reports.
CEO and Co-Founder at GT FORCE, Mukesh Taneja, told ANI, “We expect the government to consider reducing GST rates on EV components and batteries from the current 18 percent to 5 percent.”
"This tax rationalisation would help offset potential price increases resulting from the conclusion of subsidy programmes and keep EVs affordable for the masses." Taneja added.
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