Sulajja Firodia Motwani, Chair of the FICCI Electric Vehicle Committee, stated that lowering the Goods and Services Tax (GST) on EV batteries and charging services is crucial to preserving the competitiveness of EVs.
Demand for Rationalization of EV Component GST Rates
Motwani brought attention to the discrepancy in GST rates while speaking on the fringes of the FICCI National Conference on EVs. He said that while EVs are subject to a 5% GST, batteries and charging services are subject to an 18% tax. “To make EVs more affordable for consumers, the GST on batteries and charging services should be reduced to 5%,” she stated.
In instance, lowering the GST on replacement batteries could result in a major reduction in consumer expenses.
Improving the PM E-Drive Program
In order to meet the increasing demand for EVs, Motwani also emphasized the necessity of expanding the PM E-Drive program’s corpus: “With rising sales, we recommend revisiting incentive amounts to ensure the scheme supports a larger number of vehicles,” she said. To make sure the scheme’s funding matches demand over the next two years, she demanded a review.
Priority Sector Lending Offers Reasonably Priced Financing
Motwani emphasized the significance of funding and asked decision-makers to finance to EVs as a priority sector: “EVs will become cost-competitive, not just for the elites but for the masses, with the help of affordable financing,” she stated.
The Industry’s Contribution to EV Adoption Acceleration
Mahindra Group MD & CEO and FICCI President Anish Shah reiterated the necessity of teamwork in promoting EV adoption: “Much work remains to be done,” Shah said, pointing out that electric four-wheelers only make up 1.5% of the Indian market.
He emphasized the necessity for enticing EV items to spur demand and mentioned that manufacturers are developing “Born Electric” products intended for widespread adoption.
Later this month, Mahindra will introduce its new line of electrified products, Shah continued. “The government has done its part; now it’s up to the industry to drive the transition to electric mobility,” he said, praising the government’s measures.