As Finance Minister Nirmala Sitharaman gears up to present the Union Budget 2024 today, India’s electric vehicle (EV) industry is on high alert for pivotal policy decisions. Having experienced remarkable growth recently, the sector is at a critical point where continued government backing is crucial for sustaining this momentum.
The Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME) India scheme, which has been a cornerstone in promoting EVs, ended on March 31, 2024. Despite its success, the industry still grapples with issues like inadequate charging infrastructure and high battery costs. To further support the sector, the Ministry of Heavy Industries (MHI) introduced the Electric Mobility Promotion Scheme (EMPS) with a budget of Rs. 500 crore, set to expire on July 31, 2024. This scheme provides subsidies for two- and three-wheeler EVs, aiming to boost their adoption and manufacturing in India.
Madhumita Agrawal, Founder and CEO of Oben Electric, highlights the financial strain on manufacturers due to the disparity in GST rates on raw materials and finished vehicles. “We hope the budget will address this disparity to reduce the burden on manufacturers, eventually transferring the cost benefit to the consumer,” she says.
Similarly, Akash Gupta, Co-founder and CEO of Zypp Electric, stresses the need for policy continuity to achieve net-zero carbon emissions. He advocates for the inclusion of EV services in the priority lending scheme and a reduction in GST from 18% to 5% to accelerate EV adoption in delivery services.
As the Union Budget 2024 is unveiled, the EV industry looks forward to measures that will enhance growth, address supply chain challenges, and promote sustainable mobility. This is a developing story. Stay tuned to this space for all the latest updates around the automotive sector from Nirmala Sitharaman’s milestone seventh budget presentation.
The Faster Adoption and Manufacturing of Hybrid & Electric Vehicles (FAME) India scheme, which has been a cornerstone in promoting EVs, ended on March 31, 2024. Despite its success, the industry still grapples with issues like inadequate charging infrastructure and high battery costs. To further support the sector, the Ministry of Heavy Industries (MHI) introduced the Electric Mobility Promotion Scheme (EMPS) with a budget of Rs. 500 crore, set to expire on July 31, 2024. This scheme provides subsidies for two- and three-wheeler EVs, aiming to boost their adoption and manufacturing in India.
Madhumita Agrawal, Founder and CEO of Oben Electric, highlights the financial strain on manufacturers due to the disparity in GST rates on raw materials and finished vehicles. “We hope the budget will address this disparity to reduce the burden on manufacturers, eventually transferring the cost benefit to the consumer,” she says.
Similarly, Akash Gupta, Co-founder and CEO of Zypp Electric, stresses the need for policy continuity to achieve net-zero carbon emissions. He advocates for the inclusion of EV services in the priority lending scheme and a reduction in GST from 18% to 5% to accelerate EV adoption in delivery services.
As the Union Budget 2024 is unveiled, the EV industry looks forward to measures that will enhance growth, address supply chain challenges, and promote sustainable mobility. This is a developing story. Stay tuned to this space for all the latest updates around the automotive sector from Nirmala Sitharaman’s milestone seventh budget presentation.
