With the General Budget 2025 around the corner, electric two-wheeler companies are urging the government to introduce important policy measures and incentives to boost the sector. Their key demands include restarting the PM e-Drive scheme, reducing GST rates across the entire EV ecosystem, providing targeted subsidies and innovative models of financial support, strengthening domestic battery manufacturing, expanding charging infrastructure and This includes encouraging last mile delivery in the form of EVs.
Industry participants have highlighted the need for continued policy support. It has also been said that investment should be made in skill development to ensure long-term environmental sustainability of the electric vehicles (EV) system in the country.
One of the most pressing demands is for innovative models of targeted subsidies and financial assistance to make EVs more accessible. Sulajja Firodia Motwani, Founder and CEO, Kinetic Green, stressed the need for accessible financing options to make EVs affordable for both urban and rural markets.
“Consumer-centric programs like financial assistance options are important to promote EVs across the country,” Motwani said. He called for a uniform GST rate of 5 per cent for the entire EV system, especially lithium-ion batteries, to reduce costs and make EVs more affordable for customers.
Apart from targeted subsidies, industry players are also demanding revival of the PM e-Drive scheme. The scheme has played an important role in supporting the initial growth of this sector. He described the revival of this scheme as necessary to maintain the momentum of the industry, especially amidst challenges like decline in financial support and policy uncertainties.
Avesh Memon, Founder and CEO, Relox EV, stressed the importance of ensuring clarity and continued policy support, especially in view of the revised guidelines of the scheme, which have adversely impacted the two-wheeler category. “It is most important to relaunch the PM e-Drive scheme to boost investor confidence and provide a clear action plan for the growth of this sector,” Memon said. Electrification of last mile delivery also needs attention.