As the country eagerly anticipates the unveiling of Budget 2025, the electric vehicle (EV) sector finds itself filled with hope and optimism, looking for significant measures and policies that will not only make EVs more affordable for consumers but also ensure that the transition towards electric mobility is accessible to all. The Government of India has set ambitious goals to reduce carbon emissions by one billion tonnes by 2030, and industry leaders, experts, and innovators in the EV space are confident that the upcoming budget will play a pivotal role in accelerating the adoption of electric vehicles across the country, aligning with India’s sustainability objectives.
Akshit Bansal, the Founder and CEO of Statiq, stressed the importance of expanding the adoption of electric vehicles, especially in Tier II cities, which have traditionally been underserved when it comes to sustainable mobility options. He pointed out that for the widespread adoption of EVs to occur across the nation, it’s essential to ensure that these vehicles are accessible to people living beyond the metropolitan hubs. "To facilitate this transition, we need a robust EV infrastructure network, particularly in the form of widespread EV charging stations. This will create an environment where consumers feel confident and supported in their decision to switch to electric vehicles, knowing that charging will be readily available when they need it," Bansal emphasized. He also raised the critical issue of addressing the pollution caused by heavy commercial vehicles, suggesting that the government could encourage the conversion of these vehicles to electric versions, which would go a long way in curbing the growing air pollution in major cities.
Ishaan Parwanda, Director at Trinity Touch, echoed the need for incentivizing the electric vehicle industry through policy measures aimed at making EVs more affordable and cost-efficient for consumers. He pointed to the existing GST rates on lithium-ion batteries, which contribute significantly to the overall cost of EVs, and suggested that reducing GST on these essential components would help lower the final price of electric vehicles. In addition, he called for updating the infrastructure status of EV charging stations, allowing them to avail of benefits usually provided to more traditional infrastructure projects. He also suggested the introduction of performance-linked incentives (PLIs) for EV manufacturers, which could help accelerate production and enhance the affordability of electric vehicles for a wider audience. By creating a conducive policy environment, Parwanda believes that the EV market could thrive, making electric mobility a viable option for people from all socioeconomic backgrounds.
Another area of focus that Parwanda highlighted was the need for India to strengthen its domestic production capabilities, particularly for critical EV components. He pointed out that India’s current reliance on imports for key parts such as lithium-ion batteries and electric drivetrains hampers the country’s ability to bring down the costs of EVs. “There is an urgent need to focus on the domestic production of key EV components to reduce our dependency on imports. This would not only lower costs but also create a more sustainable and self-reliant EV ecosystem within the country,” Parwanda suggested. He called on the government to introduce special Production Linked Incentives (PLI) schemes for the manufacturing of EV components, which would help bolster India’s position as a global leader in electric mobility. A focus on self-reliance, combined with an emphasis on domestic manufacturing, would also create jobs, stimulate local economies, and reduce costs for consumers in the long run.
On the technological front, experts believe that investments in innovation will be crucial for driving the growth and development of the EV ecosystem in India. Raghav Arora, Co-Founder and CTO of Statiq, highlighted how leveraging advanced technologies such as artificial intelligence (AI) and the Internet of Things (IoT) could optimize the performance of EV charging networks and improve the efficiency of batteries. "Innovations in battery technology, the optimization of charging infrastructure, and the introduction of smart mobility solutions are essential to overcoming current challenges and enhancing the overall EV experience. These technologies will help ensure that electric vehicles are as convenient and cost-effective as traditional vehicles," Arora said.
He also expressed hope that the upcoming budget would prioritize investments in technology-driven initiatives aimed at supporting both startups and established companies within the EV sector. "We need more investments in AI-driven infrastructure management systems, better battery management technology, and integrated smart mobility solutions that will improve the overall EV user experience and reduce barriers to entry for consumers," Arora added. By focusing on technological innovation, India can create an EV ecosystem that is not only sustainable and affordable but also globally competitive, positioning the country as a key player in the green mobility revolution.
Furthermore, experts have suggested that the government should introduce a range of subsidies, tax incentives, and financial schemes aimed at reducing the overall cost of owning an EV. These could include rebates on the purchase price of electric vehicles, tax breaks for consumers who choose to switch to electric mobility, and grants to businesses and startups involved in manufacturing EV components. By lowering the entry barriers for both consumers and manufacturers, such initiatives would encourage the mass adoption of electric vehicles and contribute significantly to India’s transition to a low-carbon economy.
In addition to these policy measures, experts believe that the development of EV infrastructure, particularly charging stations, should be treated as a priority. A nationwide, standardized charging network would not only encourage consumers to make the switch but also make it easier for people to use EVs in rural areas or in places where charging stations are scarce. The government could work closely with private players to create public-private partnerships aimed at building these crucial charging networks and ensuring that every region of the country has access to convenient charging points.
In conclusion, the electric vehicle sector is optimistic that Budget 2025 will provide the necessary policy support to accelerate India’s transition to electric mobility. With a focus on reducing costs, enhancing infrastructure, fostering innovation, and promoting domestic production, the budget could mark a significant turning point in the country’s efforts to become a global leader in sustainable transportation. Industry leaders hope that with the right strategic investments and supportive policies, India will be able to achieve its environmental goals, create jobs, and position itself as a hub for green innovation in the years to come.
