With reference to Union Budget 2023 expected on 1st February,
please find below the Budget Expectation quote from Kinetic Green
“2022 was a significant year for the EV sector in
India. The industry saw EVs outnumbering ICE in the three-wheeler sector, a
significant rise in sales of EVs, and the initiation of EV component
manufacturing in the country. While India was heading strongly toward the EV
revolution, supply chain constraints limited the movement. But the
Government of India’s continuous thrust toward ‘Make In India’ supported the
auto industry to start the production of battery cells and other auto/EV
components locally.
Last year’s Budget was positive for the Electric Vehicle
sector, which reinforced Government’s commitment to accelerate EV and green
mobility. I expect the same from the upcoming Budget as this will further
strengthen our country’s journey towards a green future.
The support for E-mobility should continue with extension
of FAME-II by another 3 to 5 years. This will help in building a long-term
foundation for the EV segment in India by making EV mainstream with a 20-25
percent penetration. It is imperative to mention that FAME has helped to
increase EV penetration but we have just achieved only 5 percent penetration.
If subsidy is not extended, the cost of EVs would increase substantially and it
would delay and derail E- Mobility movement.
I also urge the Government to lower the import duty on
battery cells for 3-4 years to support EV movement until localized production
starts.
India has started adopting EVs as a mobility solution,
and with continuous support from the Government, we will make great progress in
the coming decade.”
