The EV sector in India has witnessed a flurry of favorable policy changes and government initiatives in the ongoing fiscal year. The 2019 Union Budget mentioned that customers purchasing EVs will be able to avail a tax benefit of INR 1.5 lakh on the interest paid on their vehicle loan. The government has approved a corpus of INR 10,000 crore under the
FAME II scheme and the GST Council has announced the reduction of the GST rate on EVs from 12% to 5% and that on EV chargers from 18% to 5%.
These policy decisions are indicative of the government’s stance to fast track the development of EVs and their related support infrastructure. More than anything else, the financing scenario that has emerged as a result of these decisions is acting as an incentive for EV adoption. Today’s customers are driven by experiences and look for top-quality products that deliver great value to them.
As sustainable vehicles become more affordable, customer interest in this sector will witness a massive uptick. With reignited demand, leading players in the EV industry will ramp up production to encash on the positive consumer segment. In fact, industry players such as Avan Motors are already going above and beyond to delight customers with smart
and reliable electric vehicles that are also cost-effective. As a result, we anticipate increased adoption and a reduction in the use of petrol and diesel vehicles.
Such concerted efforts for the government to create a favorable financing ecosystem for electric vehicles, and manufacturers to innovate best-in-class products will go a long way in motivating customers to make the switch to EVs. A massive shift to EVs is, thus, in the offing for India, and it is a truly exciting time to be a part of this fast-growing industry.