The Budget 2022-23 will be presented tomorrow and the electric vehicle industry has eyes on the announcement. The EV segment is at a nascent stage compared to their ICE counterparts and a lot of relatively small brands are at the frontline of this new EV revolution.
The Budget 2022-23 will be instrumental in the growth of the segment. EV manufacturers have some demands on both supply and demand sides of the spectrum. Any positive step in either direction will lead to either cheaper or easily accessible products for the consumer. An environment of growth will also increase competition in the sector. This will only go on to benefit the user with choice and quality.
We spoke with some of the manufacturers and stakeholders in the electric vehicle ecosystem. One of the most dominant demand is spreading awareness and increasing incentives for buyers. The PLI scheme for loans on EVs has been on the cards. If the scheme gets implemented, EV buyers will have more financing options and lower interest rates.
What EV manufacturers want from Budget 2022
Jeetender Sharma, Managing Director & Founder, Okinawa Autotech said, “One of the biggest roadblocks to the adoption of EVs is the lack of consumer awareness and trust. The government must introduce and invest in awareness programs through a variety of channels.”
He added, “It must be made mandatory under the Go Electric initiative of the central government for each state in India to have its own dedicated EV policy.”
Sharma further claimed that the government needs to introduce standardised EV charging infrastructure across the country to ensure better availability and wider acceptance of electric vehicles. There should also be an added push for EVs as the sole option for last-mile delivery. Delhi was the first to implement this new rule.
On the production side of things, EV manufacturers expect more emphasis on the make in India scheme. The country should push to establish battery manufacturing plants which would, in turn, reduce dependency on imports. Batteries form the biggest expenses in manufacturing EVs. Self-sufficiency in this regard will help manufacturers reduce costs dramatically.
Jeetender Sharma from Okinawa Autotech said, “Promoting Atmanirbharta in India’s EV sector with the PLI scheme. This will reduce import dependency and diversify the product mix, as well as provide a level playing field for India’s OEMs to compete globally. Other initiatives such as lowering GST rates on raw materials, allowing duty refunds for research and development, and capital expenditure on the development of futuristic EV technology should be considered.”
Need better charging infrastructure for EVs
Suhas Rajkumar, CEO & Founder, Simple Energy, said, “Since the consumers are concerned about a general lack of charging infrastructure, the government needs to propel the sector by providing for the same. From budget, we expect more relief to younger, more ambitious players in the electric vehicle vertical like us since we have been hit by rising prices of the components and semiconductor shortage.”
Amarjit Sidhu, Executive Director, Detel said, “As the countdown for the union budget, 2022 has started, the EV industry expects it to be included in the priority sector lending list to boost e-mobility in India. In the upcoming union budget, we expect the government to announce some specific sops, especially in the EV charging infrastructure segment. With the promotion of clean energy priority on the governments’ agenda, we would welcome it if the government could encourage various green technology policies and incentives to promote sustainability among EV automakers.”
Importance of Automobile Sector in boosting manufacturing
LML Electric, Managing Director & CEO, Yogesh Bhatia said “The Indian automobile sector is exponentially growing at an average rate of 24%, thanks to the incentives and subsidies to the electric segment.”
Bhatia further added, “It is evident that the Make in India program is exactly what the industry required especially in this post-pandemic era. And we really appreciate the recently introduced PLI scheme, which is consequently set to increase domestic manufacturing of vehicle products.
Deal with Semicondutor shortage
Bhatia emphasized the need for a push for battery manufacturing as well as less dependence on global markets for semicondutors. He said, “In this upcoming budget also, we foresee the government to support battery cell manufacturing which can further reduce the import dependency.” He also claimed that there needs to be emphasis on manufacturing of components such semiconductors to deal with the global shortage.
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