As the 2024 Budget approaches, industry players in the electric vehicle (EV) sector are expressing high expectations from the Narendra Modi-led BJP government.

They are advocating for several measures to boost the EV industry in India, including GST concessions, the launch of the third edition of FAME (Faster Adoption and Manufacturing of Electric Vehicles), support for the resale market of electric vehicles, and ensuring consistent application of the Green Energy Open Access Rule, 2022, among others.

Industry experts have also highlighted the need for: -

Toll Exemptions for EVs

Reduced Charging Costs

Private Operation of Electric Bus Depots

Wayside Charging Stations on Highways

Dedicated Facilities for Transportation

Strategic Planning for Electric Bus Adoption

Reports indicate that the Modi government might soon introduce FAME III with a budget of ₹10,000 crore, potentially announced in the upcoming budget session.

The previous FAME II scheme, which ended in March, provided subsidies on electric vehicles to boost domestic manufacturing and sales.

To further accelerate EV adoption, experts recommend offering capital subsidies to private operators of intercity buses, implementing stringent eligibility criteria for subsidies, and including trucks in the FAME scheme.

Launched under National Electric Mobility Mission Plan (NEMMP) - 2020, FAME was introduced in the Union Budget 2015-16 to give a boost to the domestic manufacturing sector and increase EV sales in India.

They also proposed reducing the GST on lithium-ion batteries from 18% to 5% and cutting GST on spare parts and other EV components.

For a sustainable transport ecosystem, the focus should be on making commercial EV fleets affordable, investing in R&D, and developing safer domestic batteries to lessen the costs.

Industry players are seeking additional support for the ‘Make in India’ initiative to help local manufacturers compete globally.

Expansion of the public charging station network remains a critical demand, as inadequate EV infrastructure continues to be a significant barrier. Enhancing this infrastructure is essential for making EVs more accessible to the broader public.