Union Budget 2022: Here's What The Indian EV Industry Expects

We Indians see our autos as life friends, and we have no intention of selling them yearly. The forthcoming Budget is likely to offer several initiatives for the sector, with a particular focus on India's rapidly growing electric vehicle market. The Union Budget 2022-23, which is eagerly expected by all stakeholders, will be crucial in defining the tone and blueprint for India's economic restoration.

The Government recently expanded the parameters for the PLI program to the automotive sector firms to increase the country's self-reliance and boost domestic manufacturing - which is likely to be the prologue to the Union Finance Budget. As India begins a new fiscal year, government activities in support of the electric vehicle sector must be more inclusive and encompass a broader range of EV mobility options.

Subsidies

The Government of India has taken several steps towards promoting the EV in the country, Subsidies, subsidies, infrastructure like charging stations, and legislation are some of the most appreciated steps of the government. Furthermore, in promoting EV the government is also advocating a non-registration policy for petrol and diesel cars older than 15 years and diesel vehicles older than 10 years. State and UTs are also taking steps in promoting EV in their respective states. In budget 2022, the EV industry is expecting expansion of subsidies and improvement in the current infrastructure.

Universal Policy For EV spectrum

The government's campaign for EV adoption, aided by FAME II subsidies, has resulted in a tremendous increase in the category in the last year. Under the auspices of the FAME Scheme, policy incentives for the electric vehicle industry have been implemented for the past eight years. FAME incentives were expanded to new categories in the second phase, and the expenditure was also raised. Low-Speed Electric Vehicles (LSEVs), which account for more than 90% of all-electric vehicles sold in the nation, were left out of the net. It is critical to incorporate LSEVs in the FAME plan to increase their affordability. Access and adoption are made possible through affordability.

 

EV Charging infrastructure

The expansion of charging infrastructure to improve customer trust is driving quicker EV adoption. Incentivizing the installation of electric vehicle charging stations in existing residential districts, housing complexes, and business enterprises will go a long way toward establishing infrastructure. One of the pre-requisites for accelerating the adoption of electric vehicles in the country is to address user range concerns. Two development hurdles for the sector are a lack of efficient charging station infrastructure and a battery supply that is now mainly reliant on imports. Government industry stakeholders suggest that the government should assist in finding solutions to this bottleneck and pave the road for EV acceptance.

PLI Scheme

The government should make its PLI plan more inclusive and lower the GST on electric two-wheelers, according to EV and mobility entrepreneurs. The PLI plan incentivizes businesses to set up or expand manufacturing facilities to boost local output by offering tax breaks on incremental sales. Companies also want the FAME II subsidy scheme to be continued beyond 2023. To qualify for the recently announced Rs 25,938-crore PLI plan to encourage the production of battery and hydrogen fuel cell cars, an automaker must have a group-level turnover of at least Rs 10,000 crore and have made a minimum investment of Rs 3,000 crore in fixed assets, such as a factory.