Budget Expectation: Electric vehicle sector demands hike in subsidy, GST reduction
With the Union Budget around the corner, India’s electric vehicle (EV) industry is eying major boost to the sector. Increase in subsidy, reduction of GST on EV components, policy to support research and development and introduction of production-linked incentives are some of the expectations of the industry.
The stakeholders are of the view that these measures would enable them to scale operations, innovate rapidly and contribute significantly to India’s EV manufacturing capabilities.
With the short-term Electric Mobility Promotion Scheme (EMPS-2024) set to end on July 31, the manufacturers are urging the government to introduce a robust, long-term scheme in this regard to addresses the evolving needs of the EV ecosystem. This new framework should equally focus on incentives for pushing demand and supply to boost domestic manufacturing and innovation.
“We expect the government to consider reducing GST rates on EV components and batteries from the current 18 per cent to 5 per cent. This will help offset the potential price increase,” said Mukesh Taneja, CEO and co-founder at GT Force.
