"We are anticipating the forthcoming budget to be an optimistic one for the auto industry. There are a lot of challenges that the industry is currently facing and the push towards EV means that a lot more needs to be done in the near future. The proposed reduction of GST on e-vehicles from 12% - 5%, and from 18% - 12% on EV chargers will give the much-needed boost to the EV sector and encourage electric vehicle adoption. Moreover, the budget must also bring in incentives on investment on EV technology and subsidy on capex for setting up EV manufacturing plants. The next three years will be crucial for the Indian auto industry in terms of investments in EV and I believe tax incentives must be extended to manufacturers as well."
The author is Executive Director at JBM Group.
(Published 04 July 2019, 14:55 IST)
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