The industry has praised Union Finance Minister Nirmala Sitharaman for her budgetary announcement regarding electric automobiles.
The government has reduced the customs charge on capital items imported for the manufacturing of lithium-ion batteries, which will make EVs more accessible to the general public, said Sulajja Firodia Motwani, founder and CEO of Kinetic Green. As part of the Make In India effort, this will also increase the manufacture of electric vehicles and their components in India.
“We applaud the budget, and as the Finance Minister most likely stated, the budget presented today is the roadmap for India @ 100,” added Motwani. The budget’s focus on green growth as part of “Sapthrishi” will undoubtedly help India come closer to its objective of having no carbon emissions by 2070.
“The Union budget is positive for the auto sector and has re-enforced government’s commitment to accelerating EV and green mobility ecosystem in India,” continued Motwani. “With an emphasis on the Vehicle Scrappage Policy, reduction on basic customs duty rates for automobiles, and focus on hydrogen fuel-powered mobility.”
Wardwizard Innovations & Mobility Ltd. Chairman and Managing Director Yatin Gupte stated, “We support the forward-looking budget offered by our Finance Minister. The budget has rightfully been referred to be Amrit Kaal’s vision.
The budget for this year significantly strengthens India’s economy by addressing all facets of the country’s overall development.
An important step toward India’s net zero ambitions, the authorization of Rs 35,000 crore for the energy transition would definitely provide a sustainable tomorrow the boost it needs.
Tax breaks on capital goods, lithium-ion batteries, and future reductions in customs duties would hasten the transition to electric vehicles and promote green mobility, strengthening the sector. The government’s ambitious plan to improve the EV infrastructure ecosystem is something we eagerly anticipate.
Although the market for electric vehicles has seen growth, the Budget lacks the long-term perspective necessary to support it. The FM announced the renewal of the concessional tariff for EV batteries as well as the doubling of the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) scheme II fund.
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