Electric vehicles (EV) are set to charge up India’s roads very soon. The sector achieve a milestone by surpassing 1.5 million unit sales in year 2023. EV penetration remains relatively low, constituting only about 1% of total car sales in the country at present, despite the government’s push in the form of various incentive schemes.
The adoption of 4-wheeler EVs for private use remains limited, with only a small number of Indian buyers going far with electric vehicles.
So, now the Qustion arises, what’s stopping Indians from buying EVs?
As per one of the survey, 51.7% of the respondents said that in order to expedite EV adoption in India the government must improve charging infrastructure.
The Indian customers hesitation has primarily to do with inadequate charging infrastructure in India.
As per Nitin Agnihotri, Automobile Expert :
“I expect the budget to allocate funds and incentives for the rapid expansion of EV charging networks which will encourage public-private partnerships and streamline regulatory processes for quicker installations. RnD grants should be prioritise to promote innovation in charging technologies and battery efficiency. Public awareness campaigns should also be fund to educate and myths about EV adoption.”
“Collaboration with state governments is important to creating a standardise approach to EV infrastructure development and encouraging a cohesive and coordinate effort.”
Nitin Agnihotri said :
“Lack of charging infrastructure, leading to range anxiety, is one of the biggest obstacles in the rapid adoption of EVs in India.”
As taxes on EVs in India are already not very high, a 27.1% of survey respondents believe that the government should reduce taxes on EVs.
On making EVs more attractive to both buyers and manufacturers, Nitin Agnihotri said :
“I expect the government to implement tax-related measures. Incentivising consumers through tax credits or subsidies for purchasing EVs can significantly boost adoption rates. This aligns with the sentiments expressed in the survey, where 27.1% of respondents suggested that the government should reduce taxes on EVs.”
Offering tax breaks to manufacturers is equally essential to stimulate the auto industry’s shift towards EV production.
As the government can provide tax incentives directly to EV purchasers.
Nitin Agnihotri suggest reducing GST on batteries from 18% to 5% will result in a decrease in the cost of EVs for consumers, making them more affordable for a large segment.
Also, slashing custom duty on importing certain EV spare parts will enable manufacturers to allocate more resources towards R&D and improve the overall quality of EVs.
The important aspect is the safety of EVs remains a concern.
A comprehensive budgetary approach that encompasses GST reductions, subsidy extensions, infrastructure incentives, R&D support, awareness campaigns, and state-level collaboration will provide the necessary impetus for the sustainable growth of the electric vehicle ecosystem in India.
RRD’s Opinion
What I think is that the government needs to focus on three key aspects to enhance charging infrastructure in India:
- High Availability
- Lower Set-up Cost
- Increase Awareness about EVs
“I think to increase charging stations for EVs, more financial incentives such as tax credits, subsidies and low-interest loans must be given to businesses and homeowners for setting up charging stations. Government also must come up with a policy that accelerates the collaboration with private companies to develop charging infrastructure,”.
Also to reduce the cost of setting up charging stations, government must incentivise solar-based charging.
Rahul Ram Dwivedi (RRD) is a senior journalist in 2YoDoINDIA.
NOTE : Views expressed are personal.
