EVs Want Extension of Subsidies in Budget 2023-24

EVs (electric vehicles) want extension of subsidies for EVs in budget 2023-24 under the FAME-ll scheme and also add light to heavy commercial vehicles in it to promote electric mobility.

The Society of Manufacturing of Electric Vehicles(SMEV) said,”we want to extend the FAME-ll subsidy scheme. The validity of FAME-ll is set to expire on March 31,2024.

The electric vehicles industry, basically the electric two wheeler segment, will grow 20 percent of the total two wheeler market.

“The subsidy will not only benefit the EV industry but also directly benefit the EV customers.”

Read more:Upcoming Electric Bikes in India [2023]

SMEV’s proposal to include light commercial vehicles (LCV) and medium and heavy commercial vehicles (M&HCV) on a project mode basis as India must prepare for the transition to e-mobility in truck and heavy commercial vehicles in three or four years.

EVs Want Extension of Subsidies in Budget 2023-24
Electric vehicles (EVs) want extension of subsidies for EVs under the FAME-ll scheme and also add light to heavy commercial vehicles in it to promote electric mobility

The main purpose is to include commercial vehicles on a project mode basis to reduce pollution and oil dependence. Only trucks in India consume 40 percent of Oil and emit 40 percent of greenhouse gas across the road transport sector.

Read more:Upcoming Electric cars under 20 lakh, 2023 

SMEV also sought expansion of the FAME ll subsidy to electric tractors taxation, SMEV said, while 5 percent GST for spare parts of EVs.

SMEV also wants to reduce custom duty  on cells which are manufactured in India. The benefits will help EVs manufacturing of lithium-ion cells in the country.”

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With the Union budget  2023-24 to be presented at a crucial stage of geo-political uncertainties, high inflation, and  slowing world  growth in future, SMEV expected that it might help the EV industry move forward on its way towards faster adoption of EVs.

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