Budget 2023 Expectations: The association of manufacturers of electric vehicles has demanded an increase in the subsidy on electric vehicles from the government, due to which a boost can be seen in the electric segment.
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Budget 2023: The association of manufacturers of electric vehicles has demanded to increase the subsidy for electric vehicles under the FAME II scheme. This organization says that in order to increase electric vehicles, from light to heavy commercial vehicles should be included in this scheme. Organization Society of Manufacturers of Electric Vehicles SMEV In pre-budget demands, a uniform 5 percent Goods and Services Tax on spare parts of electric vehicles GST requested to install.
The organization has said in a statement that the validity of FAME II will end on March 31, 2024. There is a need to increase the validity of fame, he said that the penetration that should have been made has not been made at the moment. Subsidy will work to speed it up. The organization said that market trends show that EVs, especially electric two-wheelers, have the potential to grow even after reaching 20 percent of the total two-wheeler market, adding that subsidies can be removed thereafter.
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Prices may come down due to reduction in GST
Apart from light, the industry organization has also suggested to include medium and heavy commercial vehicles in the scheme on the basis of the project. Along with giving suggestions, this organization also says that India will have to be ready to adopt electric vehicles in trucks and heavy commercial vehicles in the coming three to four years. Not only this, this organization has requested the government to impose a uniform 5 percent GST on spare parts for electric vehicles.
EV sales may decline this year
The industry body estimates that sales of one million units of electric vehicles in 2022-23 are expected to be 20 percent less than the auto sector’s target. The organization says that due to the stoppage of subsidy of about Rs 1100 crore by the government, there may be a decrease in sales.
Recall that the sales of electric two-wheelers were about 6 lakh units in 2022 and during this period 3 major electric two-wheeler makers Hero Electric, Ola and Okinawa crossed the sales mark of 1 lakh units for the first time.