May 23, 2024

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Budget 2020 wishlist: What SMEV expects from govt

Budget 2020

Budget 2020 wishlist: What SMEV expects

from govt

Two days ahead of the budget presentation 2020 by the Finance Minister Nirmala Sitharaman, she will be presenting the first full budget of the Modi government on 1st February. The Society of Manufacturers Of Electric Vehicles (SMEV), Director General, Sohinder Gill expects from government and spoke on the Budget 2020.

Budget 2020 wishlist: What SMEV expects from govt

Society of Manufacturers Of Electric Vehicles (SMEV), Director General

Sohinder Gill says that the EV industry is largely dependent on the government policies and there needs to be one voice from the policymakers. The EV policy should be clear, supportive and long term. 

Gill adds, “We strongly believe that in the short to medium run, both the EV and IC sectors can grow and complement each other and policy statements should not give jitters to either of them. We hope there are announcements in the budget that give confidence to the EV industry and bring cheers to its users. Well, thought through ‘Make in India’ policy backed up by logical import tariffs, accelerated infrastructure support, securing rare earth materials, the lithium cobalt minerals and priming up the science and research are some areas that need increased focus and support from the government. The industry and the government needs to draw and implement firm plans for re-skilling the workforce.”

The Science & Technology institutes must be encouraged to do some deep research into the alternative energy to fuel spectrum needs of the automotive sector. India has the capability to play an important role in the global EV market. 

Related Article: Budget wishlist 2019 from SMEV to Finance Minister

The twists in FAME II must be removed and the policy must be completely redrafted if needed. The substantial investments both from within and outside India can flow into the EV sector to push the exponential growth that everyone has been expecting for some years,” concludes Gill.

MG Motor India, President & Managing Director says

MG Motor India, Rajeev Chaba, President & Managing Director says that budget announcement will set a tone for 2020 for the automotive industry. The government announced on the promotion of EVs in India especially for the government use and public transport is encouraging. But it will be more beneficial if they not only in public transport but also promote and encourage private customers as well.

Here is the wishlist for budget 2020 

1. GST reduction on EV

  • GST reduction on electric vehicles to boost the electric vehicles industries. The hybrids are placed in the same bracket as large cars and SUVs and are taxed at 43% which is high as compared to the EVs which have a GST of 5%.
  • The industry expects the Finance Minister to either lower the GST on hybrids to 18% from 28% or reduce the 15% cess.

2. Incentivise private buyers of electric and hybrid

  • The EV industry expects the government to incentivise private buyers of electric and hybrid cars apart from the ones who put up their vehicles for commercial use under the FAME Scheme.
  • This helps the industry to increase EVs sales and increase the demand for EVs and hybrid vehicles.

3. Cancellation of duty on import of lithium-ion battery cells

  • The industry seeks the government to provide relief to the auto industry from customs duty on lithium-ion battery cells import.
  • As this is very important to develop an EV ecosystem in India and battery manufacturing.
  • Incentives should also be given for local manufacturing of EV batteries

4. Incentive-based scrappage policy

  • The old, outmoded and polluting vehicles such as trucks and buses should be removed from the roads. 
  • The auto sector hopes that the government will bring an incentive-based scrappage policy soon.
  • This step will mandatorily dispose of old vehicles which help to create demand for new (commercial) vehicles in the market.

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