Key EV Sector Requirements That Will Boost Sales

As Budget 2024 approaches, representatives of the electric vehicle (EV) sector are expressing high expectations from the Narendra Modi-led BJP government.

They are advocating for a range of measures to revive the EV industry in India, including GST tax breaks, launch of the third edition of the FAME (Faster Adoption and Manufacturing of Electric Vehicles) scheme, support for the EV resale market and ensuring consistent application of the Green Energy Open Access Rule, 2022, among others.

Industry experts also highlighted the need for:-

Road toll exemptions for electric vehicles

Lower charging costs

Private operation of electric bus depot

Charging stations on expressways

Dedicated transport facilities

Strategic planning for the implementation of electric buses

Reports indicate that the Modi government may soon introduce the FAME III scheme with a budget of Rs 10,000 crore, which may be announced during the upcoming budget session.

The previous FAME II programme, which ended in March, provided subsidies for electric vehicles to boost domestic production and sales.

To further accelerate EV adoption, experts recommend offering capital subsidies to private intercity bus operators, implementing strict subsidy eligibility criteria and including trucks in the FAME program.

The FAME initiative, introduced under the National Electric Mobility Mission Plan (NEMMP)-2020, was introduced in the state budget for 2015-16 with an aim to boost the domestic manufacturing sector and increase sales of electric vehicles in India.

They also proposed reducing GST on lithium-ion batteries from 18% to 5% and reducing GST on spare parts and other components of electric vehicles.

To create a sustainable transportation ecosystem, the focus must be on making commercial EV fleets affordable, investing in R&D, and developing safer home batteries to reduce costs.

Industry players are seeking additional support for the Make in India initiative to help local manufacturers compete in the global arena.

Expanding the public charging network remains a critical need, as insufficient EV infrastructure remains a significant barrier. Improving this infrastructure is essential to making EVs more accessible to a wider audience.