Budget 2025: What Electric Vehicle Industry may expect?

28 Jan 2025 , 10:33 AM

As the Narendra Modi-led government pace up for the upcoming Union Budget 2025, the electric vehicle players are expecting some fair transformative reforms. The EV players are expecting the Finance Minister to introduce reforms that could promote affordability, infrastructure, and innovation in the sector. 

The Union Government has also been promising in the previous budgets for promoting sustainable living with the help of some reforms in the EV segment. The centre has announced several schemes like Faster Adoption and Manufacturing of (Hybrid and Electric Vehicles in India (FAME India) Schemes, LI Scheme for Advanced Chemistry Cell (ACC), PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) Scheme, the Production Linked Incentive (PLI) Scheme for Automobile and Auto Component Industry in India (PLI-Auto), etc. 

As India requires Electrical Vehicles to cope with environmental pollution, economic sustainability, and energy security, the industry players are suggesting measures that could improve the government’s efforts.

Addressing infrastructure shortages, supply chain inefficiencies, and high manufacturing costs must take center stage in making EVs more affordable and accessible to the public.

Experts are requesting the government to extend financial support via subsidies, tax rebates, and investments in public charging infrastructure. Providing cheap mobility solutions to tier 2 and tier 3 cities, such as electric two- and three-wheelers, will greatly accelerate EV adoption across varied populations. 

The government must implement long-term incentives, similar to the FAME scheme, that will not only assist the industry’s expansion but also stimulate mass consumer adoption of electric vehicles. 

Further, experts believe that technology development will play a crucial role in speeding up the growth of the electric vehicle ecosystem in India.

Additionally, reducing tax rates will make adoption more affordable and boost demand for EVs.

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