“In recent years, electric vehicles (EVs) have become increasingly popular in India owing to growing eco-consciousness, efforts to reduce dependence on fossil fuels, and rising fuel costs. The Union budget for 2023 is expected to be a turning point for the sector. The EV industry is expecting a GST cut from 18% to 5% on lithium-ion battery packs and cells. The Indian electric vehicle (EV) sector, which mainly relies on batteries, would benefit if this transformation were to occur.
Furthermore, to boost the manufacturing and adoption of EVs the sector is counting on the government to promote carbon credits by enacting regulations that encourage businesses to cut their carbon emissions. Firms that emit less than the government-imposed limit can trade or sell the extra credits to companies that must satisfy the limit under a cap-and-trade system. As a result, companies receive financial rewards for spending money on sustainable energy technology and lowering their carbon footprints. Furthermore, the FAME II Subsidy Program has been effective in encouraging EV adoption in India and it’s expected to be extended beyond March 2024. Also, it is expected that the government will implement a PLI scheme for battery pack manufacturers as a means of supporting the EV market and making electric vehicles more affordable and accessible to customers. This will ensure that sufficient capacity will be available to meet the anticipated demand for electric vehicle batteries.”-Mr. Pratik Kamdar, Co-Founder of Neuron Energy