The Budget 2024 is scheduled to be introduced on February 1, 2024. The upcoming financial statement will work as a temporary financial statement that will guide the government in handling all finance-related matters until the new government is formed after the General Elections in 2024.
Indian EV Two-wheeler sector is seeking the arrival of all new policies and positive changes in the existing policies. In this article, we have given all the policy changes that the EV two-wheeler Industry can expect from the budget 2024.
Reduction in taxes
The industry is expecting a reduction in GST on electric vehicles and EV components including lithium-ion battery packs and cells. These tax reductions would make EVs more affordable and boost demand.
Extension of the FAME scheme
The FAME (Faster Adoption and Manufacturing of Electric Vehicles) scheme provides subsidies to EV manufacturers and buyers. This while, the government is expected to extend the scheme and increase the subsidy amount.
Focus on charging Infrastructure
Currently in India, the lack of charging infrastructure is a major hurdle for EV adoption and it is the primary reason people choose ICE vehicles over EVs presently. The government is expected to allocate a considerable investment in setting up more charging stations across the country.
Support for domestic manufacturing
The government is likely to announce measures to support domestic manufacturing of EVs and EV components. This would create jobs and reduce India’s dependence on imported EVs.
Incentives for battery swapping
Battery swapping is a technology that allows EV users to quickly replace their discharged batteries with charged ones. In the Budget 2024, the government may announce incentives to promote battery-swapping companies.
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