Union Budget 2021: Know what Electric Vehicle industry is expecting from this year’s Budget
Union Budget 2021: The EV industry expects more reforms and incentives for indigenous manufacturing and infrastructure to help accelerate EV consumption across the country.
New Delhi | Jagran Business Desk : Finance Minister Nirmala Sitharaman will present the budget on February 1. Many industrial organizations are having high hopes from this year’s Budget as it will be first after the country reeled under the havoc wreaked by the coronavirus pandemic. For the people and also the businessmen, the Budget 2021 is very important amid the need to rebuild the economy after the global pandemic.
Talking about the emerging electric vehicles (EV) industry, the policy support has been encouraging, however, the industry experts expect more reforms and incentives for indigenous manufacturing and infrastructure to help accelerate EV consumption across the country which has been limited so far.
Saurav Kumar, Founder and CEO, Euler Motors, as reported by Dainik Jagran said that the manufacturing in the post-pandemic era still needs encouragement and more flexible policies to support it are the need of the hour. He said that even in the field of EVs, where Fame-II (rapid adoption of hybrid and electric vehicles and Phase II of manufacturing plans) is a commendable step, we still need relief and relaxation in the current policy framework so that more companies can get profit. The rules can be tightened once they reach a level and the EV supply chain matures, he said.
The industry of electric vehicles is hopeful that reducing customs duty on import of lithium-ion batteries and exempting electric vehicles from GST may reduce prices and make electric vehicles cheaper. The problem of finance is also a major obstacle in the example of electric vehicles.
He said that the government should prioritize loan schemes to make it more attractive to consumers and especially to the commercial classes. To do this, clear instructions need to be given to banks and NBFCs to provide easy finance to buyers of electric vehicles.
Saurav Kumar said, ‘to support the growth of the industry, the government should review the ground situation of new and existing schemes’. We need to be more strict to better monitor the implementation of measures to be announced in the budget.
He said, “We are moving towards the electric revolution and we have the potential to become a Global hub of electric vehicles. For this, the government needs to focus on installing fabrication units. We expect the government to announce concrete measures to support this scenario and start production of lithium-ion batteries in India”.