With rising oil prices, climate change and discussions related to sustainable living becoming a topic of public discourse, electric mobility is becoming more than just a buzzword. Several electric 2-wheeler and 4-wheeler launches India Over the past few years and even more launch announcements auto Expo 2023 has brought this category back in the news.
The automobile sector has gone through many ups and downs in the recent years. However, according to a recent Kantar survey, for consumers to move from conventional internal combustion engine (ICE) vehicles to EVs, they will need incentives and on-ground support.
This is another area where the budget allocation is expected to increase.
With the government’s focus towards sustainable mobility, CARS24 co-founder Gajendra Jangid is also looking forward to a reduction in GST for electric vehicles, as well as support in capacity building to produce and manufacture EVs for the masses are doing as we drive towards one. Better India.
Many traditional automotive players and oil companies are investing heavily to boost the demand and adoption of EVs. Hence, other stakeholders are also looking forward to new initiatives to boost the sector and further accelerate the pace.
Greg Moran, co-founder and CEO of Zoomcar, said, “In this year’s budget, the government will continue to focus on enhancing infrastructure to ease the production and use of EVs and EV-related facilities, such as charging stations. needed. Apart from EVs, the best option and most appreciable solution for those seeking an eco-friendly and sustainable travel option would be car rental.”
Moran said the government should encourage people to choose sustainable options when it comes to commuting. Leasing an EV would be ideal for the majority of the population who want to buy a car without the commitment and extra cost. “We are expecting the car rental sector to grow and that growth is largely dependent on the budget.”
India’s electric mobility journey is gaining momentum. A KPMG analysis states that by 2030, the country is projected to be home to 102 million EVs, with a need for 2.9 million public charging stations to accommodate growing EV adoption.
Sakshi Vij, founder and managing director of Miles Cars, believes that the EV adoption phase has begun in India.
“While the commercial/logistics sector has seen good acceptance, the individual vehicle owner is still on the fence. If the budget addresses issues such as high initial cost of ownership by incentivizing individual vehicle owners, EV adoption will get a boost. Ease, electricity bill incentives as well as carbon footprint saving incentives for individual commuters could also be a step in the right direction,” suggested Vij.
Some experts believe that India is undergoing a transformation, and its automobile sector is no exception and the demand for climate justice for future generations has risen.
Nimish Trivedi, Co-Founder, Prakriti E-Mobility, said, “We expect the government to introduce policies/schemes that further support EV car manufacturers and cab service providers. Furthermore, we expect the government to provide incentives and rebates for setting up a network of EV charging hubs across India, a move that will help the central government achieve its carbon emission target in a given time frame “
Akshay Singhal, founder and CEO of Log9 Materials, believes that the government should include EVs in Priority Sector Lending (PSL) to make EVs cheaper and make them more affordable to the public.
“When it comes to incentives and financial enablement, the government should take into account not only the volume of production undertaken by manufacturers, but also the technical superiority of vehicles and battery technologies in terms of safety, longevity and fast-charging.” Singhal said to ensure that only the best reaches the end customers.
Read also: Budget 2023: Is the government planning to change the income tax system? check latest update
Rahul Jain, director, Crayon Motors, said even though EV sales have doubled last year, the industry still suffers from the high initial ownership cost of EVs, which is a direct result of high input costs.
“We are hopeful that the upcoming budget will reduce GST on raw materials/components, thereby accelerating India’s EV race. As battery manufacturing in India largely depends on imports, some duty relief could help bring down the overall cost. EVs have fewer financing options and higher interest rates than ICE vehicles. EV industry is hoping for a positive outcome from the government meeting World Edge. Apart from PLI expansion, other state government programs like GEDA and central government initiatives like ‘Atmanirbhar Bharat’ will undoubtedly benefit,” Jain said.
Atrio Automobiles believes that the budget should focus on introducing more schemes and policies to support innovation and capacity building and reward EV adoption.
Atrio MD and co-promoter Kalyan C Korimerla said, “India as a nation needs to strengthen its manufacturing capabilities and strengthen its local supply chain.”
Korimerla also said that to ensure that commercial or cargo EV adoption is not limited to large industry players, the budget should encourage small businesses and MSMEs to join the ICE to EV transition bandwagon.
Apart from this, the government is taking several steps to promote the use of electric vehicles in India. By July 2022, there were over 13 lakh EVs in India.
EV penetration in India is still in its infancy. According to KPMG analysis, a key driver of EV adoption is the availability of charging infrastructure.
This growing number of public charging stations is expected to be driven by multiple players such as pure-play charge point operators, oil marketing companies, utilities and EV fleet operators, the analysis said.
To promote the manufacture and use of electric and battery environment-friendly vehicles in the country, the government launched the Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India (FAME India) scheme in 2015, with an aim to reduce dependence on vehicles. To do. To address the issues of fossil fuels and vehicular emissions.
Presently, Phase-II of the FAME India scheme is being implemented with total budgetary support for a period of five years from April 01, 2019. 10,000 crores. This phase focuses on supporting the electrification of public and shared transport.
read all latest business news Here