The electric vehicle industry in India is seeing a new wave of stakeholders trying to do their bit to accelerate adoption of the green vehicles. The Finance Minister Nirmala Sitharaman while did not explicitly mention any new policies for the EV segment in India, but stated the focus on EV charging ecosystem which will create new earning opportunities. Industry stakeholders share their perspective on the same.
Anant Nahata, CEO, Exicom Group: “The government’s push to enhance the EV ecosystem in the country is a positive move. This will expand and support the growth of manufacturing and charging infrastructure in India and in turn promote further growth of the EV ecosystem. The emphasis on e-buses underscores the government’s accent on enhancing public green mobility. This is in sync with India’s policy priority of gradual decarbonisation across sectors, ultimately leading to the 2070 vision of net-zero. For 2030, India aims to achieve that EVs account for at least 30 percent of new vehicles sales by 2030, under the EV30@30 campaign.”
Anupam Kumar, Founder & CEO, MiniMines Cleantech Solutions: “We commend the government’s visionary approach, particularly the emphasis on viability gap funding for tapping into shore-wind energy potential. This strategic initiative is a game-changer, poised to accelerate the widespread adoption of renewable energy across the country. We are highly optimistic about the future, especially with Bharat’s unwavering commitment to coal gasification and liquefaction, which is targeting a capacity of 100 metric tons by 2030. Moreover, the phased mandatory blending of compressed biogas in compressed natural gas for transport and piped natural gas for domestic purposes perfectly aligns with our steadfast dedication to sustainable practices. This forward-looking fosters the adoption of eco-friendly alternatives and propels the growth of businesses like ours.”
Arun Sreyas, Co-Founder, RACE Energy: “We appreciate the Interim Budget’s focus on supporting manufacturing and charging infrastructure and emphasising the importance of enhancing e-bus adoption by incorporating robust payment security options. However, as a battery swapping company heavily reliant on li-ion batteries, we were hopeful for GST parity on swappable batteries. A notable disparity exists in the rates between EVs sold with fixed batteries (taxed at 5%) and the li-ion batteries utilised for swapping purposes (taxed at 18% when sold separately). It is crucial to consider this need for the widespread adoption of EVs, and we’re hopeful this will be addressed in the Union Budget presented later this year.”
Avinash Sharma, Co-Founder & CEO, ElectricPe: “This year, we expected the strong growth of the EV sector to continue, with additional support from the government in terms of subsidies, incentives and policy across state and central. In her speech, FM Nirmala Sitharaman went over increases in support for EV infrastructure and manufacturing, which is positive for the industry. However, the changes to EV Charging GST, is still needed for the industry to experience unhampered growth. We are hopeful that further discussions will be had with regards to lowering GST for charging rates and standalone batteries, therefore growing EV affordability and adoption.”
Benjamin Lin, President, Delta Electronics India: “The Budget 2024 brings a significant boost to the future of mobility. The dedicated support for manufacturing and charging infrastructure is a game-changer, promising exponential growth in our industry. The encouragement for greater adoption of e-buses in public transport networks, coupled with the implementation of payment security mechanisms, not only propels environmental sustainability but also sparks innovation and economic prosperity. It also signifies a significant leap towards a greener and technologically advanced future for the entire industry.”
Kartikey Hariyani, Founder and CEO, ChargeZone: “We wholeheartedly support the Government’s vision outlined in the Interim Budget 2024, reflecting a strong commitment to the electric vehicle (EV) ecosystem. The encouragement of e-buses in public transport networks, along with the implementation of a robust payment security mechanism not only accelerates the adoption of sustainable transportation, but also propels the growth of the EV charging sector.”
Nitin Gupta, Co-Founder & CEO, Attero: “The government’s focus on strengthening EV manufacturing and charging infrastructure in the interim budget is a positive signal towards sustainable mobility. With such initiatives, the government is laying a strong foundation for a greener and more resilient transportation sector. The push for e-buses adoption backed by a payment security mechanism will help in accelerating the transition to cleaner and more sustainable public transportation systems. The rooftop solarization scheme, enabling one crore households to receive up to 300 units of free electricity every month, marks a crucial step towards the adoption of renewable energy. This transition necessitates the use of lithium-ion battery packs for energy storage, indirectly promoting technological innovation and sustainability in the energy sector. Such initiatives align with global efforts to combat climate change and promote a greener, more sustainable future. While we hoped for provisions addressing the recycling of critical minerals, we are optimistic about the government’s overarching commitment to achieving Net Zero by 2070. It is a collective responsibility towards environmental stewardship and in building a greener future for generations to come.”
Pratik Kamdar, CEO & Co-Founder, Neuron Energy: “The Interim Budget focused on key sectors and one of the promising ones is EVs. The initiatives will enhance and fortify the EV ecosystem by bolstering manufacturing and charging infrastructure. Additionally, the encouragement of greater adoption of e-buses for public transport networks through payment security mechanisms is a notable benefit. These investments not only pave the way for increased EV sales and adoption but also open doors for burgeoning job opportunities and entrepreneurial ventures within the sector. These efforts remain dedicated to driving India’s green mobility revolution forward. There is also an anticipated outcome in the form of economic empowerment which will equip the youth with valuable technical skills, ensuring a robust workforce for the manufacturing of EV chargers, and associated equipment. We look forward to the July budget where the focus will be on Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme and much-anticipated FAME III scheme.”
Rajesh Gupta, Founder & Director, Recyclekaro: “The union budget’s “Panchamrit” targets, as highlighted by the finance minister, aim to support sustainable economic growth with a focus on using resources efficiently. This is expected to boost India’s raw material capacity, especially in the manufacturing of li-ion batteries. The commitment to strengthen the e-vehicle ecosystem through support for manufacturing and charging infrastructure shows a proactive approach to environmentally-friendly growth. By embracing economic policies for ongoing growth, the government is setting a path for a circular economy, emphasising environmental responsibility and smart use of resources. This approach not only tackles challenges in the lithium-ion battery industry but also contributes to building a resilient and sustainable future for our nation.”
Raman Bhatia, Founder & Managing Director, Servotech Power Systems: “Aatmanirbharta and Viksit Bharat took centre stage in the budget, epitomising a visionary approach to India’s self-reliance and comprehensive development. The vision for an economically independent and developed India permeated every facet of the budget, showcasing a steadfast commitment to innovation, resilience, and transformative growth, positioning India as a global leader. The emphasis on creating business opportunities and generating employment marks a significant stride in accelerating sectoral growth. Government support for manufacturing and developing EV charging infrastructure provides a crucial impetus for establishing a robust and widespread charging network. The focus on deploying e-buses in commercial spaces, facilitated by a secure payment mechanism, reflects a progressive approach that contributes to the overall advancement of the electric mobility ecosystem. While we anticipated announcements on FAME-3 and the PLI scheme, we remain hopeful that the full-fledged budget will delve into these schemes in detail.”
Utkarsh Singh, Co-Founder & CEO, BatX Energies: “The government’s strong focus on boosting the EV ecosystem and improving charging infrastructure is a significant step forward for the lithium-ion battery recycling industry. With the introduction of a forward-thinking bio-manufacturing scheme, this budget signals a positive shift towards sustainability. The inclusion of e-buses in public transport, along with efforts to achieve net-zero through coal gasification and expanding the EV ecosystem, holds great promise.”
Varun Goenka, Co-Founder & CEO, Chargeup: “While we appreciate the commitment to fortify the e-vehicle sector, we emphasise the importance of addressing certain aspects left untouched. The introduction of a bio-manufacturing scheme resonates with our environmentally conscious approach; however, we advocate for a more comprehensive approach beyond subsidies for electric two- and three-wheelers. The government’s emphasis on green energy, encompassing shore-wind energy and coal gasification, mirrors our dedication to cleaner technologies. Nevertheless, we urge a closer examination of challenges such as high GST rates and the lack of affordable financing for critical EV infrastructure, including Battery-as-a-Service facilities and charging stations. Despite our hopes for FAME-III subsidies extending coverage to EV buyers opting for vehicles without batteries, this aspect was not addressed. We eagerly anticipate a more holistic strategy that considers the diverse needs of the entire EV ecosystem.”
Samarth Kholkar, CEO & Co-Founder, BLive: “We applaud the government’s forward-thinking approach in the budget announcement, particularly the emphasis on expanding the electric vehicle ecosystem. The commitment to support charging infrastructure and encourage the adoption of e-buses for public transport networks is a significant step towards a sustainable future. This move not only promotes cleaner and greener transportation but also boosts the growth of companies in the electric vehicle segment. Moreover, recognising the vital connection between the development of charging infrastructure and the growth of last-mile delivery services, we strive to build a comprehensive and sustainable electric mobility ecosystem that aligns with the evolving needs of our communities.”
