Will the Indian government keep supporting the EV industry?
The Society of Manufacturers of Electric Vehicles (SMEV) is hopeful that the Indian government will continue to encourage the EV industry. In this budget, the government can take measures to promote R&D at the domestic level and remove supply-related problems. The Indian goverment will also introduce new schemes and measures to make India a global hub by promoting a strong EV ecosystem. SMEV DG Sohinder Singh Gill said that it is expected that the government will announce an increase in the FAME subsidy in the budget.
The provisions for the transfer of its benefits directly to the customer will be applicable. The GST rate on electric vehicles is 5%. Due to a lack of clarity, GST of up to 28% has to be paid on spare parts. We hope that the government will implement a uniform 5% GST rate on all EV spare parts. A reduction in customs duty on lithium ion cells used in EV production to 0% can help reduce the cost of EVs. The validity of Fame 2 expires in March 2024.
It is very important to have a policy for the recycling of lithium-ion batteries. An agency should be appointed by the government to buy and recycle electric components. Tata Motors has reduced the price of its popular SUV, the Nexon EV. The base trim has been reduced by Rs 50,000. The price of this vehicle has come down from Rs 14.99 lakh (all prices are ex-showroom) to Rs 14.49 lakh. After three years of Nexon EV sales, the prices have been reduced. A new variant, XM, has also been added to the Nexon EV Max. Its price is 16.49 lakh rupees. The Nexon EV comes in two variants (Prime and Max) and with different charging options.
The provisions for the transfer of its benefits directly to the customer will be applicable. The GST rate on electric vehicles is 5%. Due to a lack of clarity, GST of up to 28% has to be paid on spare parts. We hope that the government will implement a uniform 5% GST rate on all EV spare parts. A reduction in customs duty on lithium ion cells used in EV production to 0% can help reduce the cost of EVs. The validity of Fame 2 expires in March 2024.
Will the Indian government keep supporting the EV industry?
It is also expected that the government will announce the extension of this scheme, which will help support the EV industry. Such provisions will be made in the FAME II scheme. With this, the subsidy is directly transferred to the customer's account. Trucks account for about 40 percent of India's fuel consumption. If the government extends the scope of FAME to commercial vehicles, i.e., trucks and tractors, it will give a boost to EV truck and tractor manufacturing. Emissions will come down along with fuel consumption. In fact, the number of electric vehicles in the country has increased rapidly in the last five years.It is very important to have a policy for the recycling of lithium-ion batteries. An agency should be appointed by the government to buy and recycle electric components. Tata Motors has reduced the price of its popular SUV, the Nexon EV. The base trim has been reduced by Rs 50,000. The price of this vehicle has come down from Rs 14.99 lakh (all prices are ex-showroom) to Rs 14.49 lakh. After three years of Nexon EV sales, the prices have been reduced. A new variant, XM, has also been added to the Nexon EV Max. Its price is 16.49 lakh rupees. The Nexon EV comes in two variants (Prime and Max) and with different charging options.
Piyush Verma
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