Here’s what the leadership says about and expects from the upcoming Union Budget 2024
(We will be updating this article with more quotes. Make sure to check back again)
“The EV sector in India has seen rapid growth and continues to thrive on the back of a favorable policy environment and increased awareness around the value proposition of EVs. Over the last 5 years, the government has implemented several policies and schemes that have significantly benefited the EV industry. The reduced GST rates in EVs and road tax considerations have been key measures in making EVs more affordable and accessible.
Mr. Niraj Rajmohan, CTO and Co-Founder, Ultraviolette
However, the next phase of the sector’s growth will be strongly hinged on our ability to evolve into an independent technology creator, developing world-class mobility solutions for the global EV ecosystem. This then requires an imminent focus on deep tech R&D, intellectual property development, ground-up innovation and policies that will bolster the growth of companies specializing in high-tech and premium products.
In the upcoming budget, we advocate for initiatives and subsidy structures without segment caps which will in turn foster innovation and growth across multiple segments. Recent discussions surrounding the implementation of FAME 3 present a notable opportunity to enhance EV adoption in India. In light of this, any extension of the FAME subsidy and removing all caps on the ex-factory price of EVs will be pivotal in enhancing the position of tech forward companies like Ultraviolette.
Additionally, as we prepare to export our vehicles to first world countries, we hope for benefits associated with the ‘Make in India’ initiative that will help spur exports and push up the technology benchmark of the local electric vehicle ecosystem. We eagerly anticipate favorable developments that align with our vision for technological advancements, sustainability, and global market expansion.”
In anticipation for Budget 2024, we have focused on essential imperatives that are critical to the long-term development of India’s dynamic electric vehicle (EV) market. One significant recommendation is to secure permanent viability gap funding for financially pressured State Transport Units (STUs) and to develop payment security mechanism to reduce lending risks and improve credit offtake. We emphasise the importance of an infrastructure sector tag for financing to electric mobility projects and propose a capital expenditure subsidy for private bus operators that deploy e-buses on intercity routes. Categorising electric mobility loans as Priority Sector Lending and introducing incentives for battery recycling are critical steps towards lowering interest rates and promoting sustainability.
Standardising Green energy open access rules, toll exemptions for electric buses, optimising charging costs through regulatory measures and opening government electric bus depots to private players are important to creating a suitable ecosystem. Initiatives such as wayside charging infrastructure on national highways, specialised facilities at transport hubs and strategic highway adoption plans for pure electric bus operations will also help sustainable mobility.
We endorse the ongoing success of FAME subsidy, especially FAME 2, with a Rs 10,000 crore budget and recommend FAME-III scheme to further enhance adoption of electric vehicles. Providing capital subsidy to private electric bus operators on inter-city routes will increase adoption on a large scale. The government’s commitment to boosting manufacturing and exports is evident through PLI Schemes for Automobiles, Auto Components, Advanced Chemistry Cell (ACC), and Battery Storage.
To improve cost and sustainability, we strongly propose for a 5% GST on lithium-ion batteries, EV spare parts, components and correcting inverted duty structure in EV production. Standardising battery switching and tackling low-cost finance difficulties are critical for long-term growth. The government’s achievements in alternate fuels, renewable energy, and manufacturing through PLI programmes such as Biofuel Policy & National Green Hydrogen Policy, highlights the importance of these projects.
As the demand for electric vehicle grows, significant coordination efforts are required to build electric mobility infrastructure, particularly charging stations. A strong infrastructure is essential for supporting the industry’s growth. GreenCell Mobility seeks continued support and bold initiatives to take the Indian EV industry to unprecedented heights of success.
Mr. Devndra Chawla, MD and CEO, GreenCell Mobility
“As we anticipate the Union Budget from the newly formed Government, India’s electric vehicle (EV) sector beckons a strategic shift towards holistic growth aligned with the net-zero aspirations of Bharat. We anticipate government backing in green initiatives, particularly in the EV sector. With significant investments required for financing EV purchases, fintech companies like ours can play a vital role in facilitating access to funds, thereby promoting sustainable mobility solutions.”
“Additionally, as the fintech market in India is projected to reach $1 trillion by 2030, we look forward to the government introducing clearer regulations and supportive policies in the budget to drive innovation, focusing on streamlined regulatory processes, increased funding opportunities, and enhancements in digital lending, SME financing, and cross-border trade facilitation.”
“As we approach the new budget, our expectations are high for measures that will support the fintech industry’s growth and contribute towards a greener, sustainable future, fostering economic growth and technological advancement in the EV sector.”
Sameer Aggarwal, Founder & CEO of Revfin
As the government prepares to present the budget, the EV industry is keenly anticipating announcements that will drive growth and innovation. To meet the nation’s goal of becoming net zero by 2070, accelerating EV adoption is crucial. Extending the FAME subsidy will be a significant step in this direction, helping to boost EV adoption across the country. Additionally, a dedicated budget for Li-ion battery manufacturing, semiconductors, and energy storage systems is essential for developing a robust EV infrastructure. Reducing GST on Li-ion batteries and introducing PLI-based incentives can further stimulate industry growth. Moreover, increased allowances for R&D will foster innovation and open new opportunities for the sector.”
Deepak Pahwa, Director, Bry-Air
“To achieve net-zero carbon emissions, the government must focus on maintaining policy continuity. Inclusion in the priority lending scheme and reducing GST for EV services from 18% to 5% will accelerate EV-led delivery adoption. Recognizing last-mile delivery as a distinct sector under logistics policies is essential, given that one-third of shipments fall within this category. Establishing industry standards, supporting gig delivery partners with tailored schemes, and implementing standard operating procedures (SOPs) will enhance efficiency and foster growth in this vital but often overlooked segment of the logistics industry. An extension of the existing EMPS scheme will result in better stakeholder sentiment and investor confidence. With increased government support in driving localisation to cut down costs, infrastructural advancements in terms of establishing a robust charging infrastructure will further aid in boosting customer awareness, focus on job creation will foster strong collaborations and necessitate substantive developments for the EV sector.”
Mr. Akash Gupta, Co –founder & CEO of Zypp Electric
“As we look forward to the Union Budget 2024, our expectations focus on the critical need for transformative reforms in the auto sector, specifically aimed at fostering a green and sustainable energy segment. With a firm commitment to reducing pollution and addressing climate change, we anticipate the government will align its policies with the net-zero goal and sustainable development.”
“The implementation of PLI schemes specifically for EV charging companies is crucial. Expanding EV infrastructure is essential for promoting widespread EV adoption in India, and financial incentives will significantly boost the growth of our charging network. We also hope for tax reforms that support our industry and encourage consumers to transition to electric vehicles.”
“Developing a robust EV charging ecosystem, particularly in Tier II and Tier III cities, is vital. Prioritizing open data standards and APIs for charging networks will ensure interoperability and enhance user experience. At Delta Electronics India, we are dedicated to contributing to this transformative journey by providing innovative, reliable, and efficient charging solutions. With supportive budget measures, we can strengthen our charging capacity more accessible for all, paving the way for a sustainable future.”
Mr. Niranjan Nayak, MD, Delta Electronics India
“With the Central & State Government’s strong push towards a greener future, we have high expectations from the upcoming budget for the EV sector, particularly for those who believe in the ‘Make in India’ model. As we approach the 2024 budget, the electric vehicle industry stands at a pivotal juncture. We are looking for continued support and substantial policy enhancements to accelerate the transition to sustainable transportation.”
“We urge the government to consider increased subsidies for electric two-wheelers and three-wheelers, as well as incentives for domestic manufacturing and R&D initiatives. Additionally, investments in charging infrastructure and battery technology will be crucial to overcoming existing barriers to widespread EV adoption.”
“Our vision is to make clean and affordable mobility accessible to every citizen, and with the right fiscal measures, we can make significant strides toward achieving this goal. We are hopeful that the upcoming budget will reflect a strong commitment to fostering innovation and growth within the EV sector, ultimately contributing to a greener and more sustainable future for India.”
Mr. Hyder Khan, CEO and Director, Godawari Electric Motors
“The logistics industry has great hopes as the Union Budget 2024 draws near. Important areas of concentration include making large infrastructural expenditures to improve efficiency, such as building multimodal logistics parks and designated freight corridors. For enhanced operations and transparency, embracing cutting-edge technology like AI and IoT needs incentives. Streamlining the GST system and encouraging sustainability by using electric cars and other eco-friendly activities is also essential. Innovation and growth will also be fuelled by assistance for SMEs, startups, and skill development as well as by encouraging public-private collaborations and streamlining regulatory procedures. By addressing these issues, the industry will contribute more to India’s economic development.”
Ms. Zaiba Sarang, Co-founder of iThink Logistics
