Budget 2022 Expectations: 'Put EVs in priority lending sector; discontinuation of certain vehicles should be in a phased manner'

Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget for FY 2022-2023 on February 1.

Electric vehicles must be considered for priority lending by the government to accelerate their adoption, while sufficient funds must also be allocated for R&D in a public-private partnership mode for the development of batteries, industry body SMEV earlier mentioned.

Shubhankar Chaudhry, CEO, One Moto India said: "To create a robust ecosystem for electric vehicles and give a boost to the EV market, the Indian government should focus on putting EVs in the priority lending sector, as currently few NBFCs and financial institutions are providing affordable lending to potential end-users as well as fleet operators. 

Additionally, the government also needs to push for more R&D in affordable and indigenous battery technology development, which currently is the biggest pain point for EV players. Our current dependence on lithium imports of which 90%  is dominated by Chinese players is a strategic disadvantage for Indian EV manufacturers," Chaudhry added. 
 
One Moto is a British mobility company shaping and electrifying the last mile with iconic electric motorcycles, bikes, and scooters.   

On the other hand, Mridu Mahendra Das, Co-founder and CEO, Automovill said: "Post-pandemic the startup ecosystem is booming at a neck break speed in terms of funding and adoption. However, an increase in economic activity is yet to be seen which is giving revenue pressure for startups. The government should introduce some flexibility in attracting or remitting foreign funds for companies that are registered under startup (DPIIT programs). This should help startups ease the processes involved, give laxity in penalties for any delay in GST or such statutory filings, ensure quick resolution of any disputes of compliance-related matters. It will save a lot of time for founders to focus on work and also ease up the funding process which gets on hold for such statutory filings."

He further said: "Specifically in the after-sales automotive segment import duties on certain parts (specifically electrical, electronics, etc) should be lowered as the manufacture of such parts in India had a roadblock due to chip/sensor issues. Discontinuation of certain vehicles (10+-year-old vehicle in Delhi) should be in a phased manner or should be allowed to run with additional fitness requirements which will increase more revenue options for after-sales ecosystem players."

Regular industry connects activities between OEMs and after-sales players, relaxing certain norms for government auto claim process also helps after-sales players get a fair playing ground in comparison to OEMs, he added.

Founded in 2016 in Guwahati, Automovill’s tech-enabled 360-degree approach enables impeccable customer experience by bringing trust, transparency, and convenience.