February 5, 2023

Budget 2023: Will electric vehicle subsidies increase or you will have to go empty-handed, know the details. Budget 2023 is expected to increase subsidies on electric vehicles and two-wheelers

Budget 2023 Expectations: The Electric Vehicle Manufacturers Association has demanded an increase in subsidy on electric vehicles from the government, due to which the electric segment may see a boost.

Demand to increase subsidy for electric vehicles

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Budget 2023: The Association of Electric Vehicle Manufacturers has demanded increased subsidy for electric vehicles under the FAME II scheme. The company says light to heavy commercial vehicles should be included in the scheme to increase electric vehicles. Society of Electric Vehicle Manufacturers SMEV In the pre-budget demand, a uniform 5 percent goods and services tax on spare parts of electric vehicles GST Requested to install.

The agency said in a statement that the validity of FAME II will expire on March 31, 2024. Pointing out that the legitimacy of reputation should be increased, he said, the penetration that should have happened has not happened yet. Subsidy will work to speed it up. The agency said market trends show that EVs, especially electric two-wheelers, are likely to grow even after reaching 20 percent of the total two-wheeler market, adding that subsidies may be removed.

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Prices may come down due to GST reduction

Apart from lights, the industry body has suggested inclusion of medium and heavy commercial vehicles in the project on project basis. Besides giving advice, the agency also said that India should be ready to adopt electric vehicles in trucks and heavy commercial vehicles within the next three to four years. Not only this, the organization has requested the government to impose a uniform 5 percent GST on spare parts of electric vehicles.

EV sales may decline this year

The industry body has estimated that sales of one million units of electric vehicles in 2022-23 are expected to fall 20 percent short of the auto sector’s target. According to the company, the sales may decrease due to stoppage of subsidy of about 1100 crores by the government.

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Recall that electric two-wheeler sales in 2022 were around 6 lakh units and during this period 3 major electric two-wheeler manufacturers Hero Electric, Ola and Okinawa crossed the 1 lakh unit sales mark for the first time.

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