Budget 2024: Electric Vehicle cos await interim budget for subsidy boost, tax reduction

Electric vehicles

, particularly two-wheelers, have gained significant acceptance in India in the last couple of years. Last year, the country witnessed the sale of over 15 lakh

EVs

across various segments, marking a remarkable growth of more than 48 percent compared to 2022, when approximately 10 lakh units were sold. However, there was a temporary slowdown in electric two-wheeler sales around mid-2023.
In response to the market dynamics, the Ministry of Heavy Industries took action in late May by reducing the subsidy on electric two-wheelers.

The subsidy per kilowatt-hour (kWh) was slashed from Rs 15,000 to Rs 10,000, along with a reduction in the maximum subsidy cap from 40 percent to 15 percent. Despite the sales setback experienced in the following month, both the electric two-wheeler segment and overall EV sales gradually recovered and ended the year on a positive trajectory. Now, with the FAME-II subsidy set to expire on March 31, 2024, and the interim budget session around the horizon, let’s hear from the EV Inc what it is expecting from it.

Nimish Trivedi

, CEO & Co-Founder of Evera, highlighted the importance of continuing the existing concessional rate of import duties on lithium-ion cells in the budget 2024. “The

budget 2024

should continue the existing concessional rate of import duties on lithium-ion cells, to reduce the capex cost of purchasing an EV. Aligning with the government's ₹18,000 crore production-linked incentive scheme for advanced chemistry cells, targeting a 50GWh capacity.”

"The company expects measures to boost consumption and an enabling environment to drive both private and corporate investments in the economy. Greaves is anticipating continued thrust on making India a manufacturing powerhouse, deeper investments in Infrastructure development and continued policy support in new-age industries like fuel agnostic and clean mobility, Electronics, and

Sensors

, amongst others, to enable India's leapfrog to the future." added

Nagesh Basavanhalli

, Non-Executive Vice Chairman, Greaves Cotton.
Atulya Mittal, Founder of

Nexzu Mobility

, highlighted the potential of indigenous EV cycles powered by Indian technology to redefine mobility. “Indigenous EV-cycles, powered by Indian technology, have the potential to redefine mobility, realising our dream of 'har ghar ek electric cycle,' reducing the country’s oil consumption similar to how LEDs transformed energy use. We anticipate the budget will further empower consumers to align choices with 'Lifestyle for Environment,' confident that India will lead in redefining personal mobility with EV cycles as the preferred choice in the coming years.”
Mitull Batraa, Co-founder and CEO of Udaan E Vehicles, advocated for enhanced incentives for e-rickshaws under the FAME scheme in the upcoming budget. "E-rickshaws must be offered with enhanced incentives under the faster adoption and manufacturing of hybrid and electric vehicle (FAME) scheme in the upcoming budget," Mitull Batraa, Co-founder of Udaan E Vehicles says, "This will encourage competitive production and scaling of operations, thereby helping the segment to continue its momentum in coming years.”
“To propel the commercial EV and logistics fleet business ahead, the biggest impact will come from long-term incentive support for fleet operators, making commercial EVs accessible and cost-effective, which will help companies like ours to expand the fleets” said Maxson Lewis, Managing Director & CEO at Magenta Mobility as he believes this will foster a thriving ecosystem of sustainable transportation.
Akshit Bansal, CEO & Founder of Statiq, highlighted the need for circular economy measures in the budget to promote recycling, waste reduction, and the use of eco-friendly materials in manufacturing. “Additionally, the continuation of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme for the next 5 years, extending beyond its current schedule till March, is essential. “
"We call upon the government to allocate substantial funds for the development of charging facilities. Emphasizing open data standards and APIs for charging networks is imperative in the budget, as this would promote interoperability and foster a flourishing software ecosystem. This approach ensures seamless access for EV drivers to any charging station, irrespective of the provider.” Brajendra Singh Tomar, CEO & Co-founder of Finayo. He emphasized the importance of open data standards and APIs for charging networks to promote interoperability and ensure seamless access for EV drivers to any charging station.
Amrit Acharya, CEO & Co founder at Zetwerk, said “We feel that innovation isn't confined to age. To truly unlock our potential, we must bridge the gap between established manufacturers and new-age companies through a level playing field. By collaborating and leveraging their combined experience and agility, India can achieve higher growth in manufacturing and become a factory to the world, thus securing not just economic growth, but a brighter future for all.”
Ashish Deswal, Founder of EarthtronEV, expressed optimism about incentives, subsidies, or tax breaks in the budget 2024. “Charging infrastructure is a crucial component of the electric vehicle ecosystem. We are also optimistic that the finance minister will come up with incentives, subsidies, or tax breaks to encourage investment in EV charging infrastructure. This could include reduced taxes on equipment, customs duty exemptions, or other financial incentives.”