Budget 2023 expectations: What experts from the EV sector look forward to – EQ Mag
Finance Minister Nirmala Sitharaman will table the Budget 2023 tomorrow. It will be the last full budget of the Modi 2.0 government. Here’s a look at what the electric vehicle (EV) executives at Evera, Neuron Energy and iRasus Technologies have to say
Mr. Nimish Trivedi, Co-Founder, Evera
“India is undergoing a transition, and its automobile sector is no exception. Over the past few years, the demand for climate justice for our future generations has gained momentum. According to a survey, assuming the appropriate infrastructure is in place, a majority of car owners are willing to switch to EVs. Keeping the same in view, Evera is working round the clock to introduce as many fleets of EV cabs as possible in various parts of the country. And to make sure that our EVs are able to provide better services to our customers, partners and governments we have planned a network of EV charging stations across primary locations across India.
In the upcoming budget, we expect the government to introduce policies/ schemes that further support EV car manufacturers and cab service providers. In addition to this, we hope that the government will provide incentives and relaxations in establishing a network of EV charging hubs across India, a move that will help the union government to achieve its carbon emission target in a given timeline”.
Pratik Kamdar, Co-Founder, Neuron Energy
“In recent years, electric vehicles (EVs) have become increasingly popular in India owing to growing eco-consciousness, efforts to reduce dependence on fossil fuels, and rising fuel costs. The Union budget 2023 is expected to be a turning point for the sector. The EV industry is expecting a GST cut from 18% to 5% on lithium-ion battery packs and cells. The Indian electric vehicle (EV) sector, which mainly relies on batteries, would benefit if this transformation were to occur.
Furthermore, to boost the manufacturing and adoption of EVs the sector is counting on the government to promote carbon credits by enacting regulations that encourage businesses to cut their carbon emissions. Firms that emit less than the government-imposed limit can trade or sell the extra credits to companies that must satisfy the limit under a cap-and-trade system. As a result, companies receive financial rewards for spending money on sustainable energy technology and lowering their carbon footprints. Furthermore, the FAME II Subsidy Program has been effective in encouraging EV adoption in India and it’s expected to be extended beyond March 2024. Also, it is expected that the government will implement a PLI scheme for battery pack manufacturers as a means of supporting the EV market and making electric vehicles more affordable and accessible to customers. This will ensure that sufficient capacity will be available to meet the anticipated demand for electric vehicle batteries.”
“2022 has seen a rise in EV sales, especially EV two-wheelers, which has seen a whopping rise of 300% compared to the year 2021. This shows the promise of the EV market in India; not only will it grow if it gets the right push, but India also has the potential to be a global pioneer in the EV sector. The key focus of the EV industry should now be on building scale and capacity. The urgent need of the hour is to drive Reliability, Interoperability, and Economies of Scale across all parts of the EV ecosystem. Some sectors that need support and push from the Government are the Batteries (both hardware and software), OEM, and Charging Infrastructure. The Budget should focus on ease of business and encourage more local players to enter the market. Areas like component Localization, access to components, etc, if addressed, then the Indian companies, big or small, can build competitive products at competitive prices. In 2000 India became a software hub. Maybe in the 2020s, India can become the EV hub of the world”.