Interim Budget 2024-25: Accelerating India’s EV Revolution – Expert Insights And Industry Outlook

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As discussions surrounding the Interim Budget of 2024 continue, we present our initial assessment as we delve into its various facets and proposed reforms. Aman Singh, our Co-founder and Head of Analytics, shares his thoughts with EMobilityPlus on its implications for the automotive sector.

In a significant move towards sustainable transportation, Finance Minister Nirmala Sitharaman unveiled a comprehensive plan for the electric vehicle (EV) ecosystem during the presentation of the Interim Budget 2024-25 in Parliament. The strategic initiative focuses on bolstering both manufacturing and charging infrastructure to strengthen and expand the landscape for electric vehicles in the country.

The government’s commitment to enhancing public transportation is highlighted by its efforts to encourage the widespread adoption of electric buses. The introduction of a payment security mechanism aims to instil confidence among e-bus operators, fostering the growth of eco-friendly and energy-efficient commuting options within the public transport network.

Aligned with Prime Minister Narendra Modi’s vision to make India carbon-neutral by 2070, the government is dedicated to promoting clean and environmentally friendly vehicles. The Ministry of Heavy Industries and the Automobile Industry are poised to play pivotal roles in realizing this vision.

This proactive step underscores the government’s determination to pave the way for a cleaner and greener future, laying the foundation for the sustainable growth of the electric vehicle industry in India.

“We appreciate that the budget reinforces commitment towards sustainability and emphasizes a green public transportation system, prioritizing a strong charging infrastructure for widespread adoption of electric vehicles.

However, a noticeable gap in the budget is the absence of sustained and continued direct customer subsidies, a critical element that played a substantial role in driving the adoption of electric vehicles across various categories over the last two years.

We eagerly await the government’s comprehensive strategy and commitment to sustaining the electric vehicle manufacturing ecosystem. It is anticipated that a combination of fiscal and non-fiscal interventions will be outlined, offering crucial support for the industry in the coming years until it achieves a threshold for self-sustained growth.

We look forward to playing our part, providing environmentally conscious solutions that resonate with the nation’s strong commitment to a sustainable and electric tomorrow.”

Mr. Sohinder Gill, CEO, Hero Electric

“We commend the government’s visionary Interim Budget 2024, a monumental step towards a sustainable and technologically advanced future. The strategic allocation for a robust electric vehicle ecosystem aligns seamlessly with our commitment to entrepreneurship, innovation, and growth in the EV industry. The emphasis on supporting manufacturing and creating employment opportunities, coupled with initiatives for women’s empowerment and the adoption of e-buses, reflects a comprehensive approach to inclusive progress. The dedicated support for manufacturing and charging infrastructure is a game-changer, promising exponential growth in our industry. This budget represents a significant step towards cleaner air, sustainable transportation, and a thriving domestic EV industry. We are euphoric about the prospects outlined in this budget, providing a robust framework for us to accelerate EV adoption and contribute to a cleaner, interconnected future for India.”

Mr. Uday Narang, Founder and Chairman, Omega Seiki Mobility 

“Certainly, particulars in regard to the E-Mobility mission and encouragement of EV infrastructure were missing in the speech, however, the budget did point towards creating ambitious policies towards adoption of EVs in the public transportation sector. Furthermore, since the budget has circumscribed the requirement to strengthen manufacturing of EVs and infrastructure, we can be sure that it stands high on the government’s agenda, and we do expect supporting policies to follow soon.”

Mr. Atul Gupta- Co-founder & Director at e-Sprinto

“We as an OEM are thrilled with the Interim Budget announced as the government’s commitment to expand and strengthen the EV ecosystem will significantly boost manufacturing and infrastructure development. This will emerge as a notable contribution in achieving Net Zero Goals and lays a solid foundation for sustainable mobility and a greener environment. Also, as highlighted by the Honourable Finance Minister, the new age technologies and data are changing the lives of people and businesses. They are also enabling new economic opportunities as India is showing solutions through innovation and entrepreneurship.”

Mr. Hari Kiran, Co-Founder and COO, eBikeGo

We applaud the government’s commitment in the budget to nurturing the Electric Vehicle (EV) ecosystem. The allocation of resources towards the development of a robust infrastructure signifies a pivotal moment for our nation. This budget not only encourages entrepreneurship but also opens doors for a multitude of vendors, providing ample opportunities for supply and installation services. The emphasis on supporting manufacturing and charging infrastructure not only aligns with our company’s mission but also ensures a sustainable future for the entire EV industry. Additionally, the focus on creating employment opportunities for the youth, particularly those with technical skills in manufacturing, installation, and maintenance, will catalyze innovation and growth. We look forward to collaborating with the government in realizing this shared vision and contributing to the electrifying transformation of our nation’s mobility landscape.

Mr. Akash Gupta, Co-Founder and CEO, of Zypp Electric

As a woman entrepreneur, the post-budget focus on empowering women is truly uplifting. The allocation of thirty crore Mudra Yojana loans reflects a powerful endorsement of our capabilities. The government’s commitment to ease of living and preserving women’s dignity has led to a commendable twenty-eight per cent rise in female higher education enrolment and forty-three per cent in STEM courses over the past decade. These initiatives are already making a substantial impact on women’s workforce participation. Additionally, I applaud the government’s forward-looking stance in supporting the electric vehicle (EV) sector. This move not only aligns with global sustainability goals but also presents immense opportunities for women entrepreneurs to contribute to a greener, technologically advanced future. The budget’s dual focus on women’s empowerment and the EV sector is a testament to our nation’s commitment to inclusive progress and environmental sustainability.

Ms. Rashi Agarwal, CBO & Co-Founder, Zypp Electric

The Budget 2024 brings a significant boost to the future of mobility. The dedicated support for manufacturing and charging infrastructure is a game-changer, promising exponential growth in our industry. The encouragement for greater adoption of e-buses in public transport networks, coupled with the implementation of payment security mechanisms, not only propels environmental sustainability but also sparks innovation and economic prosperity. This strategic move not only aligns with our values at Delta Electronics India but also signifies a significant leap towards a greener and technologically advanced future for the entire industry.

Mr. Benjamin Lin, President, Delta Electronics India

I welcome the strategic initiatives laid out in the 2024 budget.  The government’s strong support for the e-vehicle ecosystem, including manufacturing, charging infrastructure, and incentivizing e-bus adoption, is likely to bring about important changes in our industry. Additionally, the introduction of secure payment mechanisms for e-buses addresses a crucial obstacle to public acceptance. At Delta Electronics India, we understand the transformative potential of e-mobility and are prepared to use our global expertise and local knowledge to accelerate its development. This budget represents a significant step towards cleaner air, sustainable transportation, and a thriving domestic EV industry. We are excited to be part of this journey.

Mr Niranjan Nayak, MD, Delta Electronics India

Our government is committed to advancing sustainable development by enhancing and strengthening the electric vehicle (EV) ecosystem. Through robust backing of manufacturing and charging infrastructure, they have reinforced the groundwork for a more environmentally friendly future. The focus on creating accessible and eco-conscious mobility solutions underscores the significance of this announcement in the budget. These efforts will enhance EV adoption, paving the way for a cleaner, more interconnected future. The details of this announcement in the forthcoming budget will play a crucial role in steering the country’s net-zero agenda in a positive direction.

Mr. Hyder Khan, CEO of Godawari Electric Motors

Tresa Motors commends the Interim Budget 2024 for taking strides towards a greener future. The focus on strengthening the EV ecosystem through manufacturing support and state-wide charging infrastructure development is a welcome step. This will undoubtedly accelerate EV adoption, especially in the crucial commercial vehicle segment. We’re also encouraged by the vision for rooftop solarisation and free electricity, empowering consumers and contributing to energy security. The installation of 1.3 crore LED street lights further demonstrates the government’s commitment to sustainable infrastructure and improved road safety. While these initiatives are impactful, we believe the budget could have further fuelled India’s economic engine by considering additional measures. Targeted incentives for local battery production and recycling facilities would bolster supply chain resilience and create valuable jobs. Additionally, extending FAME-II subsidies beyond two-wheelers to include commercial EVs would significantly accelerate their adoption, promoting cleaner logistics and reducing carbon footprint. We remain optimistic that future policies will address these points, and Tresa Motors stands ready to actively contribute to building a cleaner, more sustainable transportation future for India.

Mr. Rohan Shravan, Founder and CEO of Tresa Motors

“The vote-on-account and interim budget presented by the Hon’ble Finance Minister signals towards a transformative era for the nation. The commitment to fortify the Electric Vehicle (EV) ecosystem and support manufacturing and charging infrastructure aligns with global environmental goals, positioning India as a leader in widespread sustainable mobility adoption. Continued focus on rural economy support, youth skill development, and gender-inclusive initiatives reflects a holistic approach toward inclusive and sustainable growth. Skill India Mission’s success in training 1.4 crore youth strengthens the workforce for evolving job demands.”

Mr. Sameer Aggarwal, CEO & Founder – Revfin Services 

“The budget for 2024 is a significant stride forward for the automotive sector, particularly for the EV ecosystem. The government’s commitment to expanding India’s electric vehicle charging infrastructure and the approval of numerous vendors for the installation of EV charging points nationwide reflects a forward-thinking approach. This move not only propels the EV ecosystem but also opens numerous entrepreneurship opportunities, promising a surge in employment, especially for the technically skilled youth. The focus on innovation and the support for startups through various schemes, coupled with the provision of a substantial corpus for long-term, low-interest financing, is set to catalyze a transformative era for entrepreneurial ventures. We are excited and geared up to be a part of this golden era of technological and sustainable advancement.”

Mr. Aman Singh, Co-founder and Head of Analytics, Intangles

“The scheme for deeptech in defence will not only help the government start addressing the Make in Bharat initiative through indigenous technologies in defence but also unlock these technologies to other civilian uses. Deeptech-focused funds like ours will definitely benefit from enabling initiatives like this.

The solar rooftop schemes will be a big boost to not only meet our goals for clean energy but will also set up India to start addressing the EV charging infrastructure that is currently holding back wider adoption of EVs. It will also create enormous jobs for installation, manufacturing and maintenance of solar infrastructure and a secondary effect will be opportunities available for startups to build on this.

Extension of tax benefits for sovereign wealth funds expiring on 31st March 23 to 31st March 25 is a good signal from the government to indicate that there will be the continuation of beneficial policies and friendly institutional investor policies”

Mayuresh Raut, Co-founder & Managing Partner, Seafund

Budget 2024 primarily functions as a vote on account, with a strong emphasis on fiscal consolidation and a retrospective focus on the past decade’s progress, rather than unveiling major new budgetary proposals. The fiscal deficit target set at 5.8 per cent was surprisingly lower than anticipated, indicating a cautious fiscal approach.

The budget also continued to highlight the government’s commitment to addressing climate change. This was particularly evident in the decision to bolster charging infrastructure, which is expected to generate employment opportunities and accelerate the transition to electric vehicles (EVs). Additionally, the move to provide electricity through rooftop solarization stands out as a dual-benefit initiative. It not only lessens environmental impact but also alleviates financial burdens on households, embodying a model for sustainable development.

Furthermore, the budget’s focus on strengthening the EV ecosystem, through support for charging infrastructure and promotion of electric buses, marks another significant step towards transitioning to a more sustainable EV-based transportation system. These initiatives reflect the government’s ongoing efforts to align with global sustainability goals while maintaining economic stability and continuity.

Sandiip Bhammer, Founder and Co-Managing Partner, Green Frontier Capital

ParkMate applauds the interim Union Budget 2024-25 for its commendable focus on fortifying the electric vehicle ecosystem, a positive development for all parking management stakeholders. The government’s pledge to allocate a 1-lakh crore corpus with a 50-year interest-free financing scheme for private sector R&D holds tremendous promise, capable of ushering innovative solutions across sectors. Importantly, this substantial financial commitment not only empowers ongoing research and development initiatives but also lays the foundation for transformative, long-term projects. In addition, the extension of tax benefits to startups until March 31, 2025, reflects the government’s ongoing support for entrepreneurial ventures, including those in the auto-tech space like ParkMate.”

Mr. Dhananjaya Bharadwaj, Co-Founder and CEO of ParkMate

“The Interim Budget focused on key sectors and one of the promising ones is Electric Vehicles (EV). The initiatives will enhance and fortify the EV ecosystem by bolstering manufacturing and charging infrastructure. Additionally, the encouragement of greater adoption of e-buses for public transport networks through payment security mechanisms is a notable benefit. These investments not only pave the way for increased EV sales and adoption but also open doors for burgeoning job opportunities and entrepreneurial ventures within the sector. These efforts remain dedicated to driving India’s green mobility revolution forward. There is also an anticipated outcome in the form of economic empowerment which will equip the youth with valuable technical skills, ensuring a robust workforce for the manufacturing of EV chargers, and associated equipment. We look forward to the July budget where the focus will be on the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme and the much-anticipated FAME III scheme.”

Pratik Kamdar, CEO & Co-Founder, Neuron Energy

The infusion of thirty crore Mudra Yojana loans into the hands of women entrepreneurs is a game-changer, providing financial backing for aspiring female leaders to venture into the dynamic field of electric vehicle manufacturing. The commendable twenty-eight per cent surge in female enrolment in higher education, particularly in STEM courses, fortifies the talent pool for the EV sector. As a young female CEO in an EV manufacturing startup, the budget announcements resonate deeply with me. These measures not only empower women in leadership roles but will also contribute to creating a more vibrant and dynamic EV manufacturing landscape in India, presenting a transformative shift for talent acquisition and gender diversity in India’s EV manufacturing ecosystem.

The emphasis on bolstering the EV ecosystem aligns seamlessly with our vision for a sustainable and eco-friendly mobility landscape. The move towards net zero emissions by 2070 is not only a commendable environmental goal but also a strategic boost for the EV sector. The planned expansion of manufacturing will likely lead to increased production capacities, fostering innovation and competitiveness. Moreover, the focus on charging infrastructure development is pivotal, addressing a critical aspect that has often been a consideration for potential EV adopters. As a manufacturer, we anticipate these initiatives will significantly contribute to the growth of the electric vehicle market in India, making sustainable mobility more accessible and attractive to a broader consumer base.

Ms.Pragya Goyal, CEO & Co-Founder, Vegh Automobiles

“The interim budget might not have specified any policy or allocation towards the EV sector, however, it did mention the intention to promote EVs in public transportation. Additionally, what we need right now is to strengthen the EV ecosystem holistically for which budget is indicated towards policies and measures that will be undertaken to support manufacturing and charging infrastructure. Clearly, EV stands on the priority list of the government and we can expect the upcoming FAME policy and August session to encompass all the particulars”

Mr. Chakravarthi C. – Managing Director – Quantum Energy 

“We wholeheartedly support the Government’s vision outlined in the Interim Budget 2024, reflecting a strong commitment to the electric vehicle (EV) ecosystem. ChargeZone is perfectly aligned with this vision, emphasizing the need to fortify both EV manufacturing and charging infrastructure. The encouragement of e-buses in public transport networks, along with the implementation of a robust payment security mechanism not only accelerates the adoption of sustainable transportation, but also propels the growth of the EV charging sector.

We are glad to be able to play a key role in steering this positive transformation by actively contributing to the manufacturing, installation, and maintenance of EV charging stations across the country. As part of the National Highway Electrification Scheme, we’ve also been electrifying state and national highways by installing fast chargers for seamless and accessible charging for EV owners, demonstrating our vision of accelerating India’s transition to green mobility.”

Kartikey Hariyani, Founder and CEO, ChargeZone

“In the pursuit of a greener and more sustainable future, the greater adoption of e-buses within public transport networks emerges as a pivotal step. Not only do electric buses significantly reduce carbon emissions, but they also contribute to cleaner and quieter urban environments. To fortify the e-vehicle ecosystem, it is essential to focus on infrastructure development, battery technology advancements, and supportive policies.

One critical aspect that requires attention is the implementation of a robust payment security mechanism. As e-buses become more prevalent, ensuring secure and efficient payment systems will be vital for user convenience and trust. Integration of secure digital payment methods, encrypted transactions, and real-time monitoring will not only streamline the payment process but also safeguard user data.

As we reflect on the budget 2024, it is encouraging to witness a commitment to fostering sustainability and technology-driven initiatives. The increased allocation for e-mobility infrastructure, research, and development signifies a forward-looking approach. This budget reflects the government’s dedication to steering the nation towards a cleaner, more energy-efficient future. Together, with a strengthened e-vehicle ecosystem and enhanced payment security mechanisms, we can accelerate the transition towards sustainable urban transportation, benefitting both the environment and the well-being of our communities.”

Mr. Sumit Aneja, Founder, Speedways Electric

Reflecting on the Interim Budget 2024 presented, Greaves Cotton Limited reaffirms its commitment to aligning strategies with the nation’s vision. The budget’s commitment to achieving net zero by 2070 and a renewed focus on sustainability align seamlessly with our goal to shape the future of sustainable last-mile green mobility. We commend the emphasis on empowering youth and harnessing ‘Nari Shakti’, recognising the significant contributions of women in our workforce. The increased allocations for the National Hydrogen Mission reinforce our confidence in India’s shift towards clean energy solutions. These initiatives are poised to catalyse innovation, boost skill development and stimulate growth in crucial sectors for India’s sustainable development journey.

The interim budget provides a robust blueprint for Viksit Bharat. It comprehensively addresses all sectors of the economy, with a specific emphasis on fostering innovation, research, and entrepreneurship. Setting up a corpus of 1Lakh crore & providing 50-year low interest loan for tech-savvy youth will scale up research and innovation. The budget also demonstrates a noteworthy commitment to sustainability, particularly in the energy sector. Promotion of solar rooftop installations, provision of 300 units free power every month to 1 crore households, mandatory blending of Compressed Biogas (CBG) with CNG & PNG, and incentives for Offshore wind energy will ensure energy accessibility, affordability, and availability. There is also a noteworthy focus on strengthening of the EV ecosystem by supporting the charger manufacturing infrastructure. Increasing the no of EV buses on the roads is a welcome environmentally friendly step.

Union Budget stresses on accelerating infrastructure development in cities to cater to the growing population needs. The affordable housing scheme for middle class will help in improving their living standards. Steps like expansion of urban infrastructure with metro rail , NaMo Bharat Trains  and expansion of existing airports under UDAAN scheme will ease commute and boost connectivity.”

Mr. Deepak Sharma, Zone President, Greater India, MD & CEO, Schneider Electric India

“The union budget’s “Panchamrit” targets, as highlighted by the finance minister, aim to support sustainable economic growth with a focus on using resources efficiently. This is expected to boost India’s raw material capacity, especially in the manufacturing of Li-ion batteries. The commitment to strengthen the e-vehicle ecosystem through support for manufacturing and charging infrastructure shows a proactive approach to environmentally-friendly growth. By embracing economic policies for ongoing growth, the government is setting a path for a circular economy, emphasizing environmental responsibility and smart use of resources. This approach not only tackles challenges in the lithium-ion battery industry but also contributes to building a resilient and sustainable future for our nation.”

 Mr. Rajesh Gupta, Founder & Director at Recyclekaro 

“The 2024 budget turned out to be relatively uneven, considering it marked the final budget for this government. As anticipated, there were no significant surprises or substantial changes. However, there were notable positive initiatives, particularly for sunrise industries. The establishment of a 1 Lakh Crore Fund to provide interest-free loans of 50 lakhs could significantly benefit emerging sectors, such as the EV Industry – showcasing a forward-thinking perspective for the evolving landscape.

Moreover, the budget’s emphasis on expanding India’s electric vehicle charging infrastructure is poised to drive the adoption of EVs, instilling confidence in potential adopters. This move supports the EV ecosystem and opens up many entrepreneurship opportunities within the sector, further contributing to its growth. This strategic move extends the budget’s impact beyond immediate fiscal implications.”

Mr.Saral Talwar, COO at BikeWo

The interim budget was inline with the expectations. However, startups and sunrise sectors continue to find a special mention even in the interim Budget. The extension of tax exemption to Startups is a good gesture and provision for Rs 1 lakh crore toward sunrise segment at nominal or zero interest rate will certainly help small business. The focus on boosting EV charging station will drive sale of both vehicles and charging infrastructure. No change to direct and indirect tax was also expected, however we may see new rates in full budget to be proposed in July 2024.

Anil Joshi, Managing Partner, Unicorn India Ventures

“Various initiatives announced by the FM today clearly demonstrate the government’s intention to further accelerate EV adoption and also generate significant employment opportunities for the youth. It is encouraging to see the focus on research and innovation to further grow the EV ecosystem. We believe that as the govt rolls out details of the scheme in the coming days for growing the EV public charging infrastructure, the availability of public chargers across the country will significantly grow and EV companies like ours will find higher market acceptance from its consumers and also attract investor interest. This will also break the ‘range anxiety’ , the biggest barrier for EV adoption in our country. The government’s support in providing financial assistance and support to EV manufacturing will encourage entrepreneurs to do deeper innovation in the battery management segment and other technologies. Growth in EV charging infra will also generate employment opportunities for the youth as companies will be on a look out for people with technical know-how of running and maintaining charging infra. EV companies will also enjoy a deeper vendor ecosystem providing battery and other components for building make in India EV vehicles”.

Dinesh Arjun, Co-founder and CEO, Raptee Energy

“India’s Interim budget 2024  is a major step forward in accelerating the adoption of EVs in India, and we believe it will create significant opportunities for companies like TelioEV. The increased focus on charging infrastructure will address a key concern for potential EV buyers, and it will also boost the confidence of investors in the Indian EV market. We are particularly excited about the government’s plans to approve a large number of vendors for the supply and installation of EV charging points across the country. This will create a competitive market and drive down the cost of charging infrastructure, making it more affordable for everyone.

We believe that the government’s initiatives will create massive employment opportunities, especially for youth with the technical skills to be a part of large-scale manufacturing of EV charging components. TelioEV is committed to playing a leading role in this growth and we are confident that the Indian EV market is poised for a bright future.”

Dr Lalit Singh, CEO of TelioEV

“Inspired by the forward-thinking proposals in the Union Budget of 2024, the electric vehicle (e-vehicle) industry stands at the threshold of transformative possibilities. The decision to expand and fortify the e-vehicle ecosystem, with a specific focus on bolstering manufacturing and charging infrastructure is poised to be a significant boon for the entire e-vehicle industry. An initiative such as this is anticipated to not only invigorate the sector but also provide a solid foundation for sustainable growth in the sector.

I am particularly encouraged by the government’s foresight in championing increased adoption of e-buses for public transport networks. The introduction of payment security mechanisms to incentivize this transition not only elevates the attractiveness of electric buses but also addresses critical barriers to their widespread integration. This strategic move will help further build a cleaner, more efficient urban transport system, and we eagerly anticipate actively participating in and propelling this transformative journey. Moreover, The Indian government’s targets for EV adoption – 40% for buses, 30% for private cars, 70% for commercial vehicles, and 80% for two-wheelers by 2030 – represent a decisive shift towards a more sustainable future in the transportation industry.

At Abzo Motors, we recognize the Union Budget of 2024 as a catalyst propelling innovation and progress within the e-vehicle industry. The comprehensive measures unveiled underscore the government’s steadfast commitment to sustainability and a cleaner future. By prioritizing manufacturing and charging infrastructure, the government lays the groundwork for sustainable development, providing a clear roadmap for the entire e-vehicle industry to thrive.”

Kanchi Patel, co-founder, Abzo Motors

“The Interim Budget presented today highlights the government’s intent to continue its focus on inclusive and sustainable development. The government stands committed with a special emphasis on empowering the poor, women, youth, and farmers and is focused on driving policies that resonate with their aspirations.

As a responsible brand focused on implementing sustainability, we are pleased to see the government’s focus on promoting electric vehicles (EVs) which is a visionary step towards environmental sustainability as well as overall economic growth. Additionally, the commitment towards expanding the e-vehicle ecosystem brings an exciting prospect for the youth, which will create employment opportunities that align with the demands of the future. The introduction of biomanufacturing and bio-foundry schemes is also a welcome move that will be a great alternative to bio-degradable production.

Overall, it is a balanced budget despite being interim. It addresses the immediate needs while laying a chart for long-term economic resilience.”

Mr. Rohit Saboo, President & CEO, National Engineering Industries Ltd.

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