Comprehensive policy framework for electric vehicles and incentives for battery production: this is what the automotive sector expects from the 2024 budget
Budget 2024: Some other experts expect incentives for battery manufacturing units and a robust supply chain for EV components.
New Delhi: While Union Finance Minister Nirmala Sitharaman will present the interim Budget 2024 on February 1, the auto industry is expecting major action from the Finance Ministry. Some industry experts expect a comprehensive policy framework for EVs and good insurance standards tailored to EVs. Some other experts expect incentives for battery manufacturing units and a robust supply chain for EV components.
Speaking to India.com, Hari Kiran, co-founder and COO, eBikeGo, said that as Budget 2024 approaches, the auto industry is waiting for insights into the GST landscape, especially for entry-level two-wheelers.
He said expectations include updates on the potential FAME 3 scheme, PLI solutions and revisions in the GST for two-wheelers. “Looking beyond the financial allocations, we hope that the budget unveils a comprehensive policy framework for electric vehicles, addressing licensing, safety and insurance standards tailored to electric vehicles. To reduce costs, a focus on localizing battery production is critical, with incentives for battery manufacturing units and a robust supply chain for EV components,” he said.
Brajendra Singh Tomar, CEO and co-founder of Finayo, said that as the Union Budget 2024-25 approaches, India's electric vehicle (EV) industry is eagerly looking forward to the rollout of policies aimed at boosting growth and promoting the country's e-commerce. mobility objectives.
“We expect continued support in the form of demand-side incentives, including tax breaks for electric vehicle buyers and an expansion of subsidies under FAME-II. Setting up a robust EV charging infrastructure is equally crucial, especially in Tier II and Tier III cities,” he said.
He said the automotive industry is calling on the government to release substantial funds for the development of charging facilities. “Highlighting open data standards and APIs for charging networks is essential in the Budget as this would promote interoperability and foster a thriving software ecosystem,” he said.
Shashank Donthi, CEO of Hynetic Electronics, said: “My outlook for India's 2024 budget is centered around a shift from carbon dependence to embracing energy efficient policies, especially within the context of the energy sector. It is critical for the government to channel investments into rural infrastructure and provide incentives that increase the financial viability of sustainable energy solutions,” he said.
He added that the success of 'Make In India' depends on robust infrastructure and streamlined processes for SMEs through digital means, thereby promoting local manufacturing. Large-scale projects, including multi-modal transport, will increase the competitiveness of Indian industry, boost exports and address fiscal deficits, he added.
Veer Singh, CEO of Lord's Automotive Pvt. Ltd, said: “As the sales of electric vehicles in the country are witnessing healthy growth, we expect the government to propose budgetary provisions to expand the FAME II (Faster Adoption and Manufacturing Electric Vehicles) program with the aim of support growth of electric vehicles. Government policies and regulatory standards have been favorable to the automotive industry so far. In the interim budget, the government is expected to continue the existing policy and regulatory framework,” he said.
Abhinav Kalia, CEO and Co-Founder, ARC Electric, said: “As we step into 2024 and witness the progress in the EV and automotive industries, our optimism is accentuated by the anticipation around Budget 2024. The continued initiatives of the government, such as subsidies, tax cuts and partnerships have played an important role in driving development.”
He said that with the EV market expected to grow by over 100% by 2024, he looks forward to continued support in the upcoming budget.