Pre Budget expectation quote Sulajja Firodia Motwani Founder and CEO of Kinetic Green
Sulajja Firodia Motwani, Founder and CEO of Kinetic Green, commented “As we anticipate the forthcoming Union Budget, we are eagerly looking forward to policy initiatives that will drive the green mobility agenda and foster sustainable practices. The country experienced a remarkable surge in Electric Vehicles (EVs) last year, and this can be attributed to the government’s proactive policy initiatives and support to energy transition and to EV acceleration, in particular.
As we welcome the Union Budget 2024-2025, we are optimistic that the GoI will announce continued support to support demand for EVs with the announcement of FAME III scheme. FAME scheme of GoI has been instrumental in reducing the price differential between EV and ICE vehicles, and thereby spurring demand from customers for EVs. This scheme has been the most successful demand generation incentive and the success of it can be seen in growing interest in and adoption of electric 2W and electric 3W from customers across the country. With help of Fame II, a large number of electric buses have been ordered and deployed in our cities, thereby reducing the menace of pollution.
Thus, the most important expectation and demand from EV sector in the Union Budget 2024 is the continuation of demand incentive schemes for EVs with FAME III scheme. We strongly feel that if FAME II demand incentive scheme is suddenly discontinued in March 2024, there by leading to a significant increase in prices of EVs, it will lead to reduction of demand and as a country, we will lose momentum we have garnered towards a rapid transition to green transport. It may also lead to higher imports and loss of gains in Make in India for electric vehicles and their components. A clear and consistent demand generation roadmap is critical for continued and enhanced investments in e-mobility.”
Further, including Electric vehicle financing under Priority Sector Lending will help to provide impetus for affordable financing for EVs. We also request Government to create a strong export incentive policy for export of EVs, thereby encouraging local manufacturing of EVs for global markets. We anticipate policies that align with global sustainability objectives and position our country as a leader in the transition to electric mobility. Moreover, we are hopeful for a reduction in GST rates from the current 18 percent to 5 percent on lithium-ion batteries. This move by the GoI will bring about a positive impact on the EV industry.
The upcoming 2024 budget is poised to mark a significant transformation for the electric vehicle industry. The industry eagerly anticipates a budget aligned with sustainable and net-zero development goals, fostering the growth of the electric vehicle sector, and contributing to a greener and cleaner future for India.”