Union Budget 2023-24: Reactions from the Indian EV Industry

The Union Budget 2023-24 presented by finance minister Nirmala Sitharaman on February 1, 2023, has elicited mixed reactions from the Indian EV industry. While some stakeholders have hailed the government's efforts to promote electric vehicles, others feel that more could have been done to boost the industry. In this article, we'll take a closer look at the key announcements made in the budget and analyze the industry's response to them.

Key Announcements for the EV Industry

The budget announced several measures aimed at promoting the adoption of electric vehicles in India. Some of the key announcements include:

·         Setting up of Rs. 18,000 crore funds to encourage the production of lithium-ion batteries

·         Allocation of Rs. 1,000 crores for the promotion of EV charging infrastructure

·         Incentives for companies manufacturing electric vehicles and components

·         Reduction in GST for Electric vehicles from 12% to 5%

·         Encouragement of public sector undertakings to shift to electric vehicles

Industry Reactions to the Budget

The Indian EV industry has welcomed the government's efforts to promote electric vehicles, with many stakeholders expressing their appreciation for the measures announced in the budget. Some of the key reactions include:

·         The Society of Manufacturers of Electric Vehicles (SMEV) has welcomed the government's efforts to promote electric vehicles, stating that the measures announced in the budget will go a long way in promoting the industry.

·         The CEO of a leading EV manufacturer has praised the reduction in GST, stating that it will make electric vehicles more affordable for consumers and help to increase their adoption.

·         An industry expert has expressed disappointment at the lack of measures to promote the manufacturing of electric vehicle components, stating that this will hamper the growth of the industry.

Conclusion

The Union Budget 2023-24 has taken several steps to promote the adoption of electric vehicles in India, but there is still much to be done to make EVs a mainstream mode of transportation. The industry has welcomed the government's efforts, but it remains to be seen if the measures announced in the budget will have the desired impact. Nevertheless, the Indian EV industry is poised for growth and it will be interesting to see how it develops in the coming years.