• Source:JND
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Union Budget 2015: The budget session will commence on January 31 and Finance Minister Nirmala Sitharaman is likely to present the Union Budget for the financial year 2025-26 on February 1, 2025. The Finance Minister has held extensive meetings with various industry representatives from sectors such as real estate, healthcare, finance and technology to seek suggestions from them over the past few weeks.

As the Union Budget 2025 approaches, stakeholders in the electric vehicle sector are urging the government to implement reforms that promote growth, stability and ease of doing business. Industry leaders are emphasizing that measures such as subsidies, low interest rates on EV loans, and funding support would work as fuel for the industry.

Avesh Memon, Founder & CEO of Rilox EV demands that providing clarity and consistent policy support will bolster investor confidence and set a clear roadmap for the sector's growth.

"The upcoming Budget 2025 must catalyze to rejuvenate India's electric vehicle (EV) sector, which has encountered challenges such as declining funding, policy uncertainties, and slowing sales growth. Revitalizing the PM E-DRIVE scheme is of paramount importance, especially addressing the revised guidelines that have adversely affected the two-wheeler segment. Providing clarity and consistent policy support will bolster investor confidence and set a clear roadmap for the sector's growth," said Avesh Menon.

"To make EVs more accessible, the Budget should introduce targeted subsidies and innovative financing models tailored for both individual buyers and businesses adopting EV fleets. SMEs, which play a critical role in logistics and mobility, must be incentivized to transition to electric vehicles through grants or tax benefits that reduce the financial burden of adoption," he added.

Rajeev YSR, CEO of Thunder Plus and Group Chief Marketing Officer at ETO Group believes that Prioritizing GST parity for EV batteries and reducing GST on charging services to 5% would make EVs more affordable and boost adoption.

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"As we approach the Union Budget 2025, there is great anticipation for measures that can drive India's EV industry toward transformative growth. The transition from subsidies to sustainable policies, such as performance-linked incentives for battery and auto-component manufacturing, could be instrumental. Prioritizing GST parity for EV batteries and reducing GST on charging services to 5% would make EVs more affordable and boost adoption,' said Rajeev.

"Additionally, classifying EV charging infrastructure under the ‘infrastructure industry’ could facilitate access to cheaper financing, encouraging businesses to expand charging networks and address one of the sector's biggest challenges. Consumer-focused initiatives like lower interest rates on EV loans and tax credits could also ease adoption hurdles," he added. 

Abhinav Kalia, CEO and Co-Founder of ARC Electric demands that the government should take Initiatives to promote local manufacturing of batteries and EV components are equally critical, reducing reliance on imports and making EVs more affordable

"A key focus should be on strengthening the EV ecosystem through infrastructure development. Allocating resources for expanding charging networks, especially in Tier 2 and Tier 3 cities, will reduce range anxiety and encourage widespread EV usage," said Abhinav Kalia.

"Initiatives to promote local manufacturing of batteries and EV components are equally critical, reducing reliance on imports and making EVs more affordable. To support manufacturers, tax incentives for green production methods and increased investments in R&D for advanced battery technology, such as solid-state batteries, are essential. Additionally, measures to incentivize battery recycling and second-life applications will further enhance sustainability within the EV ecosystem," he added.

Lokesh S, Director & Co-Founder of VOC Automotive hopes that the government will introduce policies that further support MSMEs in the automotive service sector. 

"As we look ahead to the Union Budget 2025, VOC Automotive hopes to see the government introduce policies that further support MSMEs in the automotive service sector. In particular, we are optimistic about tax reforms, financial incentives, and funding support that will help small businesses grow and thrive. These steps are essential in driving the sector forward, enabling businesses like ours to expand and invest in improving service quality," said Lokesh.

"At VOC Automotive, we are focused on increasing our presence in Tier-2 and Tier-3 cities, where the demand for affordable and reliable two-wheeler services is growing rapidly. To achieve this, we hope to see measures that make financing more accessible for businesses in these regions. Additionally, skill development initiatives will be crucial for meeting the increasing demand for qualified technicians and ensuring that the workforce is well-equipped to handle the evolving needs of two-wheeler owners," he added. 

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