• Mon. Jun 14th, 2021

Budget 2021 on the Expectations of the Electric Vehicle Manufacturers


Feb 6, 2021

Electric vehicle manufacturers in India have a number of things that they expect from their government. One of them is an improvement in the rate at which charging infrastructure is growing. After all, not even the FAME-II initiative seems to be making much difference. Since its existence back in 2015, the country has not even hit the 1000 charging stations mark.

Despite that, the country seems to be doing well in terms of the electric vehicle sector. It has received acceptance from both the consumers and the consumers. The automakers have embraced the fact that the transition to electric vehicles is inevitable, and that’s the same case for the public. For instance, 2020 saw two new entries into the electric vehicles models sector. They are Mercedes Ben EQC 400 and Tata Nexon, MG ZS EV. That’s not it because the future is also bright with other upcoming models such as Maruti Wagnor EV, Tata Altroz EV, Porsche Taycan, and Mahindra EKUV100.

It is important to note that Jaguar Land Rover is also doing well, with prospects showing 50% in electric vehicle retails sales by the end of the second year of the 2021 financial year. Equally important, Tesla has also decided to explore the Indian market. As a matter of fact, it has established a research and development office in Bengaluru.

The progress is significant, but there is still room for improvement. That’s why the electric vehicle manufacturers are hoping that Budget 2021 will include their interests. One of the burning issues is charging stations. They suggest that they may be as many as possible since one car takes a lot of time to charge fully. As of now, the figure is below 1000 despite the 2015 FAME-II. With such a number of charging stations, a further increase in electric vehicles will only lead to congestion around that area and, worst of all, inconvenience. That’s why the electric vehicle manufacturers are advocating their presence in other places other than the fuel stations. Their suggestions include movie theatres, cafes and cinema halls.

The other expectation has to do with the batteries policy. They suggest that their GST needs to be reduced further. This suggestion comes despite its reduction to 18%, and the electric vehicle manufacturers say that it is still relatively high. There is an inconsistency since the one sold together with electric cars has a GST of 12%, but that becomes 18% for batteries sold separately. Last but not least is finance. The manufacturers want to have it easy whenever they go looking for funds.