Indian budget 2019 is extremely positive for the Electric Vehicle sector, and re-affirms India’s commitment to rapid electrification of India’s automobile sector, said Sulajja Firodia Motwani, Founder and CEO of Kinetic Green and Vice Chairperson, Kinetic Group.
“Finance Minister has announced approval and adoption of FAME II-government’s detailed policy to incentivise and support accelerated adoption of EVs, with an outlay of whopping Rs. 10,000 crores for next three years. This removes all ambiguity surrounding the long term EV Policy and I am confident that this move will encourage manufacturers to enhance investments in this sector and customers to purchase move EVs. Reduction of GST on EVs from already concessional 12 percent to five percent will make them more attractive when compared to engine vehicles that attract 28 percent GST. Further, the proposed increase of Rs one in price of diesel and petrol, will enhance the attractiveness of the lower running cost of EVs. The tax deduction for loans taken by customers to purchase EV will also help in creating demand from consumers,” she said.
Motwani added that announcements such as proposed tax breaks on Mega investments for lithium battery and cell manufacturing will pave way for a “Make in India” focus across the entire supply chain of EV manufacturing in India.
“Government has taken several steps in the right direction for a rapid increase in investments in EV by the industry and adoption of EVs by the consumers. We welcome this budget and appreciate the Government’s commitment to lower pollution in our cities and move towards fuel security of our nation,” she pointed out.