Budget 2024: The electric vehicle (EV) industry is relying on incentives, tax adjustments, and funding for infrastructure to boost sales and growth.

With the decline in battery-driven vehicle sales following significant subsidy cuts from the government, the domestic Electric Vehicle (EV) industry is hopeful for upcoming announcements that could boost its growth. Expectations from the Finance Minister in the forthcoming budget include the introduction of the FAME-3 policy, funding for charging infrastructure, incentives for localizing battery components, implementation of a priority lending scheme, and reduction of GST rates on EV charging services, among other measures.

The Society of Manufacturers of Electric Vehicles (SMEV), the leading industry body representing EV and EV component manufacturers, believes that the central government must address the downturn in the EV 2W and 3W segments following the FAME II period, which ends on March 31, 2024. 

R.K. Misra, President of SMEV, stated, "To boost personal EV ownership, specific measures to enhance EV use in commercial applications such as shared mobility, taxis, and last-mile delivery would be advantageous. Additionally, it is crucial to rectify the GST disparity by reducing the GST on battery packs from 18 percent to 5 percent and lowering the GST rates for public charging to encourage the rapid development of EV charging and swapping infrastructure."