FY24 budget should be favourable to EV industry: Kinetic Green CEO

The year that went by was significant as far as the Indian electric vehicle (EV) industry is concerned as in the three wheeler segment EV vehicles overtook the traditional fuel-powered ones, said Sulajja Firodia Motwani, Founder and CEO, Kinetic Green.

Like last year's Union Budget which was positive for the EV industry, this year too she expects it to favour the sector.

"2022 was a significant year for the EV sector in India. The industry saw EVs outnumbering ICE (internal combustion engine) in the three-wheeler sector, a significant rise in sales of EVs, and the initiation of EV component manufacturing in the country," Motwani said.

According to her, while India is heading strongly toward the EV revolution, supply chain constraints limited the movement.

The support for E-mobility should continue with extension of FAME-II by another three to five years. This will help in building a long-term foundation for the EV segment in India by making EV mainstream with a 20-25 per cent penetration.

"It is imperative to mention that FAME has helped to increase EV penetration but we have just achieved only five per cent penetration. If subsidy is not extended, the cost of EVs would increase substantially and it would delay and derail E- Mobility movement," Motwani said.

She also urged the government to lower the import duty on battery cells for 3-4 years to support EV movement until localised production starts.

"India has started adopting EVs as a mobility solution, and with continuous support from the government, we will make great progress in the coming decade," Motwani said.

According to Nagesh Basavanhalli, Executive Vice-Chairman, Greaves Cotton Limited, there should be uniform five per cent GST on all EV components and avoid an inverted duty structure, which blocks funds in working capital for the EV companies.

The benefits of the production-linked incentive scheme must be expanded to suit fuel-agnostic policies as well, he said.

On his part, Ketan Mehta, Founder & CEO, HOP Electric Mobility, said the government should streamline the PLI scheme, thus bringing clarity in the provisions and related benefits

"FAME II scheme to be defined with more clarity and inclusive to ensure innovation in product development and enhance EV adoption.A Level playing field between established players and start-ups in the segment," Mehta said.

He also said the government should promote the universal battery charging and swapping infrastructure for ease of use.

--IANS

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