Interim Budget: Auto majors hail Govt’s plans for EV sector & Viksit Bharat

The Interim Budget, presented by Finance Minister Nirmala Sitharaman yesterday (February 1, 2024), places significant emphasis on fostering the growth of the electric vehicle (EV) sector, with a particular focus on bolstering charging infrastructure across the nation. Recognising the pivotal role of EVs in achieving sustainable and cleaner transportation, the budget outlines a series of measures aimed at accelerating the adoption of electric vehicles and addressing key challenges hindering their widespread deployment.

In her speech, the Finance Minister said, “Our Government will expand and strengthen the e-vehicle ecosystem by supporting manufacturing and charging infrastructure. Greater adoption of e-buses for public transport networks will be encouraged through payment security mechanism.”

Industry Speak

Sulajja Firodia Motwani, Founder and CEO, Kinetic Green:

“The announcements on the interim budget for Viksit Bharat illustrate the Government’s steadfast commitment to creating a developed India by 2047. The significant progress gained in all aspects of infrastructure physical, digital, and social over the last decade demonstrates our multifaceted economic management, which effortlessly aligns focus on infrastructure building with aggressive capital expenditure; with inclusive and people-centric development.

The allocation of Rs 2.78 lakh crore to the Ministry of Road Transport and Highways is a clear indication of strides toward progress, particularly in fortifying the electric vehicle (EV) ecosystem. The Government’s commitment to the expansion and fortification of the e-vehicle ecosystem, promote deployment of EVs for the masses, coupled with support for manufacturing and charging infrastructure, marks a pivotal moment.

The Government remains resolute in its commitment to expanding and sustaining this ecosystem, fostering entrepreneurial opportunities for vendors engaged in the supply and installation of charging infrastructure. Simultaneously, it aims to create employment opportunities for the youth equipped with technical skills in the manufacturing, installation, and maintenance of these vehicles.

The EV sector was expecting an announcement in the interim budget regarding the continuation of the Fame scheme for demand generation. We are hopeful to have this coming in the weeks ahead.

We receive this budget with great enthusiasm, confidence and hope for the coming Amrit Kaal.”

Venkatram Mamillapalle, Country CEO & Managing Director, Renault India Operations:

“With the Interim Union Budget 2024 announcement completed, Renault India embraces the transformative vision outlined by Finance Minister Nirmala Sitharaman, steering towards a ‘Viksit Bharat’ by 2047. As a committed contributor to the nation’s progress, we applaud the inclusive approach reflected in initiatives like the Fasal Bima Yojana, benefiting 4 crore farmers, showcasing the Government’s dedication to rural prosperity.

Renault India enthusiastically supports the impetus on advancing the e-vehicle ecosystem, recognising its pivotal role in sustainable mobility. The promise of expanded manufacturing and charging infrastructure aligns seamlessly with the commitment to delivering innovative, eco-friendly solutions. Moreover, the emphasis on e-buses for public transport, echoes aspirations for fostering a greener, more sustainable future. Renault India stands poised to actively engage and collaborate in driving positive change and contributing to the realisation of a prosperous and sustainable India.”

Nikhil Rajpal, CEO, Hero Electronix (makers of Qubo):

“In the unveiling of the Interim Union Budget 2024, Finance Minister Nirmala Sitharaman has strategically charted out a path not just for driving economic growth, but for a transformative era of inclusive prosperity.

The strategic emphasis on empowering entrepreneurship with robust financial support is a game-changer. It paves the way for innovation-led development, mirroring our own ambition to be at the forefront of ‘Viksit Bharat’, and resonates deeply with our vision of building successful technology businesses out of India.

This budget is not just a financial statement; it’s a blueprint for a resilient and self-reliant India, capturing the spirit of ‘Sabka Prayas’ and our collective resilience through challenging times.

As we at Hero Electronix (Qubo) stay buoyed by the Government’s sustained support, we are more committed than ever to be instrumental in India’s journey. It’s a journey not just towards economic success, but towards establishing India as a beacon of innovation and visionary leadership on the world stage.”

Pratik Kamdar, CEO & Co-Founder, Neuron Energy:

“The Interim Budget focused on key sectors and one of the promising ones is Electric Vehicles (EV). The initiatives will enhance and fortify the EV ecosystem by bolstering manufacturing and charging infrastructure. Additionally, the encouragement of greater adoption of e-buses for public transport networks through payment security mechanisms is a notable benefit. These investments not only pave the way for increased EV sales and adoption but also open doors for burgeoning job opportunities and entrepreneurial ventures within the sector. These efforts remain dedicated to driving India’s green mobility revolution forward. There is also an anticipated outcome in the form of economic empowerment which will equip the youth with valuable technical skills, ensuring a robust workforce for the manufacturing of EV chargers, and associated equipment. We look forward to the July budget where the focus will be on Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme and much-anticipated FAME III scheme.”

Chetan Maini, Co-founder and Chairman, SUN Mobility:

“As a leading player in the EV energy services sector, SUN Mobility is particularly encouraged by the continued focus on green growth. I welcome the proposal to strengthen EV manufacturing and charging infrastructure.  The announcement to promote e-buses is a progressive move towards electrifying the heavy vehicle segment. It shows the government’s efforts towards encouraging wider adoption of EVs and fostering sustainable public transportation.

Overall, this is a prudent Budget that outlines the government’s dedication towards driving India at the forefront of sustainable revolution. We looked forward to positive announcements on the implementation of the Battery Swapping Policy, which was proposed in 2022. Announcements on further reforms like GST reduction on EV batteries and rationalization of inverted duty structure on EVs would have added further impetus to the country’s ambitious EV transition goals.”

Ranjita Ravi, Co-founder, Orxa Energies:

“The Interim Budget of 2024 has mentioned plans to accelerate the EV ecosystem through the expansion of charging and manufacturing infrastructure in the country. We at Orxa Energies firmly believe in India’s commitment towards growing electric mobility across the country and we look forward to collaborating with the government in achieving this aspiration.

We are also delighted with the Honourable Finance Minister’s mention of the government’s intent to bolster deep tech for defence purposes. We are optimistic that such initiatives will accelerate our work in defence technologies and widen our footprint in these realms.”

Varun Goenka, Co-Founder & CEO, Chargeup:

“Chargeup acknowledges the Government’s positive strides in the interim budget, marking a pivotal shift towards sustainable practices. As a prominent player in India’s electric vehicle landscape, we seamlessly align with the Government’s focus on expanding the e-vehicle sector and reinforcing manufacturing and charging infrastructure. While we appreciate the commitment to fortify the e-vehicle sector, we emphasise the importance of addressing certain aspects left untouched.

The introduction of a bio-manufacturing scheme resonates with our environmentally conscious approach; however, we advocate for a more comprehensive approach beyond subsidies for electric 2- and 3-wheelers. The government's emphasis on green energy, encompassing shore-wind energy and coal gasification, mirrors our dedication to cleaner technologies.

Nevertheless, we urge a closer examination of challenges such as high GST rates and the lack of affordable financing for critical EV infrastructure, including Battery-as-a-Service facilities and charging stations. Despite our hopes for FAME-III subsidies extending coverage to EV buyers opting for vehicles without batteries, this aspect was not addressed. We eagerly anticipate a more holistic strategy that considers the diverse needs of the entire EV ecosystem. Looking ahead, Chargeup remains committed to collaborating with the government to pave the way for a greener and more resilient future for India’s e-vehicle ecosystem.”