PLI program for e-bikes could be on Nirmala Sitharaman’s radar to boost production and exports

Union Budget 2022-23: Need to streamline GST on batteries and other components of EV production to cut costs

Indian Union Budget 2022: India’s EV industry is set to grow at an astronomical CAGR of 90% and hit $150 billion by 2030

India’s electric vehicle industry is expected to grow at an astronomical CAGR of 90% and hit $150 billion by 2030, according to a recent report by consultancy firm RBSA Advisors. Faced with these figures, it is time for the 2022 budget to increase the growth of the electric vehicle industry.

At the dawn of a major transformation, this new ecosystem is already shaking up the market for existing vehicles. More green mobility options will not only bring environmental benefits, but will also boost the tech industry and provide plenty of job creation opportunities in the years to come.

According to JMK Research and Analytics, electric vehicle registrations exceeded 50,000 units in a month in December 2021 alone. The electric two-wheeler category saw particularly positive growth, with a 132% increase over 2020 As the e-bike segment continues to grow, the inclusion of low-speed electric two-wheelers among EVs and a broader manufacturing base, and labor and parts availability will give it the potential to scale faster.

The Union Budget 2022-23 will play a crucial role in setting the tone and plan for India’s economic recovery in the financial year 2022-23. The government has recently expanded the parameters of the Production Linked Incentives (PLI) program for automotive companies to increase the country’s self-reliance and boost domestic manufacturing – which will likely be the prologue of the finance budget. of the Union. This action expands the possibility of offering a PLI program to the e-bike industry, helping manufacturers build their production and export capabilities.

Provide increased charging infrastructure for electric vehicles

To meet market demands, simplicity and availability of electric vehicle charging infrastructure will be crucial for widespread adoption of electric vehicles – ideally one charging station every 3×3 km and every 20 km on highways – thus incentivizing the development of infrastructure and rules and programs to promote battery swapping. Streamlining the tax system (TPS) on batteries and other components used in the production of electric vehicles will help contain costs, with the benefits being passed on to consumers.

Unified policy needed to encourage electric vehicles

To boost the electric vehicle industry, the Indian government has issued policies and regulations such as FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles), which was supposed to end in March 2022, but has been extended to 2024. …needs a unified policy to encourage electric vehicles across the country, making it easier for companies focused on green transportation to expand their presence.

In the years to come, financing electric vehicles will become the most important catalyst for the adoption of electric vehicles. The attractive economy and government support have already boosted the demand for electric vehicles. Yet the commercial electric vehicle market, which is expected to be a key growth vertical, is hampered by a lack of funding and incentives, which remains the biggest hurdle. With the potential to grow to $150 billion by 2030, further efforts to make funding, incentives and subsidies more accessible would benefit the sector.

Electric vehicles (EVs) have gained a lot of traction in recent years. The future looks bright, not only due to reduced carbon emissions, but also the added benefits for manufacturing and other accessories that faster adoption has to offer. While signs point to the EV sector taking center stage, it is with great hope that makers of EVs, and e-bikes in particular, are looking forward to the 2022 budget.

The author is co-founder and CEO of manufacturing startup EMotorad-ebike.

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