The auto industry is pinning hope on the upcoming union budget 2019 as it will uplift consumer sentiment and infuse positive environment for auto industry including the electric vehicles.
Auto mobile industry players are working toward extension of the incentive scheme for electric mobility under the faster adoption and Manufacturing of Hybrid and Electric vehicles in (FAME). It is hoping for a positive response from the upcoming union budget with a minimum 10 years extension therefore making it long term. This extension will lead to achieving India’s electric vehicle target which in turn will undoubtedly help in reviving of the industry.
Also incentives Under FAME Policy should include all electric vehicles and not limit incentives to only Advanced Batteries like Li batteries. We are positive that the new budget will include Lead Acid Batteries in 2 wheelers and 3 wheelers and not limited to registered vehicles only like in Electric 2 Wheeler < 250 Watts Incentives have been withdrawn on vehicles where registration is not required.
In addition GST on all categories of Electric Vehicles including batteries should not to Exceed 5 % with Input Tax Credit availability.
Furthermore there should be ease of Retail Finance Availability under Priority Lending like in Agriculture not only from Nationalised Banks but also through NBFC and Pvt Banks.
In the upcoming budget we are also hoping that Retail Finance with Margin Money will not exceed 10 % and Sub vented Rate of Interest should be kept maximum 5 % ROI on all Commercial Vehicles including 3 wheelers.
Lastly there should be scrap Incentive on all passenger and Commercial Vehicles under 7 years.