Budget 2024: How auto sector reacted to govt’s new EV push

The Interim Budget 2024 has brought a wave of optimism for the auto sector, particularly for the electric vehicle (EV) industry. Finance Minister Nirmala Sitharaman announced the government’s plan to expand and strengthen the EV ecosystem by supporting manufacturing and charging infrastructure. The move has been welcomed by industry stakeholders and experts.

Maulik Manakiwala, Partner, Indirect Tax, BDO India, sees this as a positive shift towards EVs. He said, “The focus on expanding the EV charging network continues. This will also increase opportunities for a large number of small vendors for manufacturing, installation, and maintenance of EV charging networks.”

Mayuresh Raut, Co-founder & Managing Partner, Seafund, believes that the scheme for deeptech in defence will not only help the government start addressing the Make in Bharat initiative through indigenous technologies in defence but also unlock these technologies to other civilian uses. He added, “The solar rooftop schemes will be a big boost to not only meet our goals for clean energy, but will also set up India to start addressing the EV charging infrastructure that is currently holding back wider adoption of EVs.”

Anmol Singh Jaggi, Co-founder and CEO, BluSmart said “The 2024 Interim Budget has reiterated the government’s firm belief in the positive impact of promoting electric vehicle (EV) adoption and boosting the charging infrastructure. This aligns with our vision for sustainable mobility and the growth of the overall EV ecosystem. As we move ahead, the adoption of cleaner and green transport alternatives, rationalising the GST tax structure on EV charging and batteries, coupled with the reinforcement of existing EV policies and the introduction of new ones, will play a critical role in promoting electric mobility and achieving India’s climate goals. India’s target of a 45% reduction in emissions intensity by 2030 requires concerted efforts, and we are eager to contribute to this transformative journey as refreshed by the FMs speech."

Hyder Khan, CEO of Godawari Electric Motors, praised the government’s commitment to advancing sustainable development by enhancing and strengthening the EV ecosystem. He said, “These efforts will enhance EV adoption, paving the way for a cleaner, more interconnected future. The details of this announcement in the forthcoming budget will play a crucial role in steering the country’s net-zero agenda in a positive direction.”

Nitin Gupta, Co-Founder & CEO Of Attero Recycling, also welcomed the government’s focus on strengthening EV manufacturing and charging infrastructure. He said, “The push for e-buses adoption backed by a payment security mechanism will help in accelerating the transition to cleaner and more sustainable public transportation systems.”

Saurav Kumar, Partner, INDUSLAW said, “Push for electric vehicle ecosystem has been a priority for Government. Adoption of Fame II came with some challenges such as only 10 percent of the total incentive outlay was reserved for charging infrastructure. The Budget emphasis on manufacturing and charging infrastructure provides hope that a larger portion of FAME III incentives will be focused towards charging infrastructure development.”

Kartikeya Prakash, Partner at Khaitan & Co lauded FM's bold vision for India's EV future. He said, "The focus would be on fostering entrepreneurship in the sector, with plans to approve numerous vendors for supplying and installing EV charging points. This would not only encourage EV adoption and build public confidence but also create surge in jobs, particularly for technically skilled youth in manufacturing of components for EV charging infrastructure, along with employment for semi-skilled labor in the deployment and maintenance of these charging stations.”