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EV Industry Appeals For Subsidies To Boost Sales
The Morning Standard
|July 16, 2024
WITH electric vehicle (EV) sales losing momentum following a sharp reduction in subsidies provided by the government, the auto sector is pinning hope on the third phase of the FAME (Faster Adoption and Manufacturing of Electric and Hybrid Vehicles) scheme to find a mention in Finance Minister Nirmala Sitharaman's upcoming FY24-25 union budget speech.
The sector is also anticipating soaps from the government to boost the battery and charging infrastructure, rationalise tax structure and support the R&D capabilities.
"Policy measures and initiatives promoted by the Government of India and state governments were instrumental in kick-starting the vehicle electrification story in the country," said Rohan Kanwar Gupta, Vice President & Sector Head Corporate Ratings, ICRA Limited. The rating agency expects that there could be a substantial allocation towards subsidy incentives in the Budget, both for manufacturers and consumers.
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