Budget Suggestions for EV Segment: The coming era is of electric vehicles (EV). In such a situation, there is a lot of expectations attached to the budget that it will not only support the auto sector but will also encourage the EV segment.
Budget Suggestions for EV Segment: Due to the Corona epidemic, the economy of the whole world including India has suffered a major setback. The Union Finance Minister will present the budget for the next financial year 2022-23 on February 1 and this budget is expected to support the economy. The auto sector has also suffered a major setback due to the Corona epidemic and chip shortage has added to the problems of this sector. The coming era is of electric vehicles (EVs). In such a situation, there is a lot of expectations attached to the budget that it will not only support the auto sector but will also encourage the EV segment. The auto sector not only expects tax relief from the budget but also expects new initiatives and incentives for R&D. The upcoming budget is expected to boost demand.
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Demand for charging stations every 20 km
According to Arun Sunny, founder and CEO of high-speed motorcycle maker Trouve Motor, if the EV charging infrastructure is strengthened, EV sales will also increase. He has advocated setting up of one charging station every 20 km on the highways. For this, he has appealed to the Finance Minister to give incentives on infra-development and the rules and schemes related to battery replacement will also help. Apart from this, according to Arun Sunny, there has been a demand for relief in GST on battery and other parts of EV because it will make it easier to manage the cost. Apart from this, he has sought tax benefits under the scrap policy for domestic EV companies who make EVs from scrap.
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Small companies expect incentives from the government
Meghna Suryakumar, founder and CEO of data-driven rating and information database platform Crediwatch, says that if small manufacturers and associated SMEs do not have any formal credit rating, then such companies should use digitization and technology to grow business through the budget. Incentive should be given. Apart from this, Meghna has also requested relief regarding GST.
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Easy financing can boost EV sales
According to a report by JMK Research and Analytics, for the first time in December 2021, more than 50 thousand electric vehicles were registered in a month. Last month, 50866 EVs were registered, an increase of 240 per cent year-on-year. However, due to the high cost and difficulties in getting loans, its craze has not been made yet. In such a situation, Sameer Agarwal, founder and CEO of fintech digital lending platform RevFin Services, believes that if finance facility is made available for electric vehicles, then their sales will increase in the next few years.
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The government has announced subsidy for passenger electric vehicles, but there is a problem of financing for commercial electrical vehicles, which can be seen if it is overcome. According to Agarwal, by the year 2030, this industry can reach 15 thousand crore dollars (11.26 lakh crore rupees). In such a situation, he has drawn the attention of the Finance Minister towards providing financing facilities in an easy way.
Demand for subsidy on charging stations
According to Ketan Mehta, CEO of HOP Electric, provisions should be made for fast-charging infrastructure across the country in the budget. For this, the government can give subsidy to encourage companies and businessmen making electric vehicles. According to Mehta, several levels of subsidy are being given for charging stations in Maharashtra, Punjab and Bihar and a similar scheme can be brought for the whole country, which will encourage the sale of electric vehicles.
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Demand for giving tax benefits to customers
Mehta has drawn the attention of the Finance Minister to the fact that the current GST rate on raw materials is 18-28 per cent, while outward supplies attract GST at the rate of 5 per cent, which needs to be rectified. Mehta believes that improving this will help in optimizing the cash flow of EV makers. There is a tax exemption of Rs 1.5 lakh on the loan taken to buy an EV. Mehta has advocated for more such tax benefits and subsidies.
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