EV industry expects stronger push for ‘Make in India’ in upcoming budget

The industry is hopeful that the upcoming FAME-III scheme will include subsidies for electric two-wheelers, making them more affordable and attractive to consumers

India’s EV industry has high expectations from the upcoming budget. Under Prime Minister Narendra Modi’s government, promoting green mobility through EVs has always been a key focus. In fact, in the previous budget, commendable steps were taken towards a greener future by supporting EV manufacturing and expanding charging infrastructure across the country.

Talking to Bizz Buzz, Ravi Machani – Co-Founder Investor, Tresa Motors said, “As the incumbent government begins its third term, the commitment to green mobility is expected to intensify further, with a strong emphasis on ‘Make in India’ initiatives.”

These policies are expected to boost domestic EV production and create a robust ecosystem for EVs in India, with a strong focus on securing a reliable supply chain for EV materials. By focusing on resources available within India for cell manufacturing, the government aims to reduce reliance on imports and make the nation more self-sufficient, he said.

Furthermore, the EV industry expects the government to offer incentives for heavy commercial vehicles (HCVs), thus encouraging the mining, steel, cement and logistics industries to transition from diesel-powered to eco-friendly electric HCVs. These measures will not only make these sectors more sustainable but also significantly contribute to India’s overall goals for green mobility.

Ashok Vashist, Founder & CEO at Wise Travel said, “We believe that subsidies should not merely incentivize purchase but should reward usage. It’s crucial that subsidies are directed towards the operators, not just the manufacturers. This ensures that the benefits trickle down to those who actively contribute to reducing emissions and promoting sustainable mobility.”

Subsidies should be based on the utilization of the vehicles, rewarding operators who integrate EVs into their fleets and maximize their usage. This way, the subsidy becomes a tool for promoting actual impact rather than mere ownership.

As we look to expand our electric fleet, we hope that the budget and FAME 3 will prioritize operators who demonstrate commitment to sustainability. Those who merely purchase EVs for show should not be the primary beneficiaries. Instead, subsidies should reward those who utilize these vehicles extensively, thereby maximizing their environmental and economic benefits, he said.

The electric vehicle revolution in India has gained remarkable momentum over the past two years, propelled by the government’s visionary FAME-I and FAME-II initiatives. We applaud these policies that have catalyzed the nation’s transition towards clean mobility.

“As the interim budget for 2024-25 demonstrated, the government’s commitment to bolstering India’s EV ecosystem extends far beyond these initial schemes. The increased focus on domestic manufacturing and charging infrastructure development is a testament to their unwavering support for this critical industry,” Aditya Singh Ratnu, Co-Founder and CEO of ZEVO said.

While these measures are commendable, we believe there is still room for improvement. One area that requires urgent attention is the inclusion of electric two-wheelers under the FAME subsidy umbrella. Extending subsidies to two-wheelers would not only reduce manufacturing costs but also open up investment opportunities, and encourage consumers to invest in these vehicles.

Initial reports do indicate that the highly anticipated FAME-III scheme is on the horizon, and is to receive a substantial budget allocation of around Rs 10,000 crore. This scheme is expected to support electric two, three, and four-wheelers, marking a significant milestone in India’s EV journey. We eagerly await the details of this initiative, as it will lead to a strong transition away from traditional Internal Combustion Engine vehicles and further strengthen the EV ecosystem, paving the way for the next 10 years.