One of the major takeaways ahead of the 2019 Budget has been the reduction of import duties on components for electric cars which will come down from 15%-30% to 10-15%. Although CBU electric cars will continue to be taxed between 60-100% which will help protect Made-in-India electric cars stay competitive. In concurrence with this , finance minister Piyush Goyal said that India would lead the world in transportation sector, with electric vehicles (EVs) and energy storage devices set to play a leading role in the segment.
During the presentation of thee 2019-20 Interim Budget for 2019-20 in the Lok Sabha, Goyal also said the usage of such green technologies would help the country become self reliant in terms of energy requirements. Quoting to the PTI Goyal said “India will lead the world in transport revolution through electric vehicles and energy storage devices bringing down import dependence and ensuring energy security for our country,” He furthered his statement by adding, that the only way to rapidly grow renewable energy in India will be when India stops the import of fuel and gas. Goyal stressed on the need for people to start using electric vehicles saying that it will not only save on Foreign Exchange currency leaving the country but will also ensure that India becomes more self-reliant on energy.
As of now, the government will continue to try and achieve their goal of 30 per cent electrification by the year 2030. However, according to estimates by NITI Aayog EV sales are expected to touch around 25.36 million units in India in 2030.However, around 59.17 million units will continue to be powered by internal combustion engines (ICEs).
In reaction to the 2019 budget, Mr Sohinder Gill, Director General- Society of Manufacturers of Electric Vehicles (SMEV) “Prime Minister Shri Narendra Modi’s and Finance Minister Shri Piyush Goyal’s mission of bringing an Electric Vehicle revolution to India by 2030 is a truly path-breaking and will surely provide much-needed impetus to the industry. The government’s focus on the use of clean energy in the transportation sector would certainly help our country tackle the issue of climate change. EV industry welcomes our Hon’ble Finance Minister’s commitment towards making the country pollution free, in his budget speech 2019-2020. We hope the government would soon announce a concrete plan of action with its time-bound implementation to fulfill its stated vision. SMEV strongly feels that an initial high dose of incentives and actions must be taken in the next 1 or 2 years to relaunch the electric mobility mission that has sort of lost steam in the recent years due to flip flop of policies. We have witnessed that EVs are more popular in semi-urban and rural areas. Gov allocation of RS 19,000 crore under Pradhan Mantri Gram Sadak Yojana would further expand the market for EV manufacturers. Since no substantial schemes were announced on electric vehicles in the budget, we expect that the government would announce specific action plans to reach the 1st one million electric vehicles on the road by 2021.”
Today, only two manufacturers makes Electric Cars in India with most of them only targeting business to business sales through corporate programs, the Tata Tigor EV, the Mahindra E20 and the Mahindra eVerito. However, over the course of the next two years India is expected to see a boom in electric four wheelers with the likes of Kia Motors, MG Motors, Maruti Suzuki and Hyundai to all launch cars in the electric space in the months to come. Electric Two-wheelers have more of a penetration with Hero Electric, Ather Energy and Okinawa Scooter already selling a number of electric two-wheelers in India!