EV Industry seeks incentives, funds for infrastructure, tax rationalization from Budget

15 Jul 2024

As Finance Minister Nirmala Sitharaman gears up for the Union Budget 2024-25 on July 23, the electric vehicle (EV) sector is optimistic about potential announcements that could spur industry growth.

The EV sector is at a critical juncture, with every player striving to capture market share.

The industry anticipates that the government will introduce FAME-3, allocate funds for charging infrastructure, provide incentives for the localization of EV components, integrate EVs with renewable energy sources, implement a priority lending scheme, and reduce GST on EV services, among other measures."To achieve the ambitious target of 30 percent EV penetration by 2030, continued government support is essential. As EV manufacturers invest heavily in research and development to reduce costs, government assistance is needed to make EVs more affordable and narrow the price gap with internal combustion engine (ICE) vehicles," said Aryaman Tandon, Managing Partner at Praxis Global Alliance for the Mobility sector.