The demand for electric vehicles has improved and is expected to grow significantly. Tarun Mehta, co-founder and CEO, Ather Energy shares his expectations from the upcoming Budget 2022.
“The demand for electric vehicles continues to surge ahead as consumers reap benefits offered by the FAME II subsidy and tax rebates. To keep up the consumer demand and to drive faster adoption of EVs, we are hopeful that the FAME II subsidy would continue well beyond 2023. The EV sector requires such early bird incentives to accelerate manufacturing and consumer adoption to ensure stability in the coming years as we see new players emerging offering reliable products and value compared to petrol vehicles.”
“In 2021, the government launched several initiatives including the PLI scheme to enhance the country’s manufacturing capability. However, while the startups form the majority of the EV ecosystem in India and have led the EV revolution from the front, a majority of them are ineligible for the PLI scheme. There is a need to be inclusive in this approach as startups would help open up more opportunities for the industry to help drive growth and innovation in the sector. Similarly, EV manufacturers have highlighted concerns around GST inverted structure and have requested reducing taxes on input costs.”
“Another key aspect to drive faster EV adoption is the charging infrastructure development to boost consumer confidence. There is a tremendous requirement to mandatorily ensure EV charging infrastructure to be set up in all existing and upcoming housing projects and commercial establishments. Also, incentivising setting up EV charging stations in existing residential areas, housing complexes and commercial establishments will go a long way in setting up the infrastructure.”
“I feel 2022 is going to be a landmark year for the EV industry and define the roadmap for the coming years,” concluded Mehta.