EV sector seeks more incentives in Budget 2020

EV sector seeks more incentives in Budget 2020

Representative image.

By Akhil Aryan

To accelerate the all-electric transition, the EV industry needs a combination of short and long-term policies, which include: 

 > Helping manufacturers reduce lithium-ion cell production costs:

Currently, Li-ion batteries amount to 45% cost in EVs which means that the cost of an EV is directly proportional to the cost of its batteries. We strongly support SIAM in suggesting the government to abolish the customs duty of 5 percent on li-ion cells. It is imperative to incentivize local manufacturing of lithium-ion battery cells which can further enable battery packs to be manufactured and assembled locally, reducing import costs.

 > Promoting the EV ecosystem and adoption:

Offering incentives and reducing the upfront cost of installing charging stations, battery swapping stations and facilitate land acquisitions to support the creation of EV charging infrastructure. 

 Poor infrastructure, low speed and unaffordable have been the key challenges hindering EV adoption in the country. Localization of EV components, improved availability of battery technology and extensive charging infrastructure setup can reduce the overall cost of EVs, making them viable for shared mobility as well as for personal use.

 > Facilitate the development of ancillary industries: 

A notable reduction in the overall cost of production of batteries for various components that go into a battery can help reduce the cost of the EV and aid in a faster adoption in the country.

(The author is Co-Founder and CEO at ION Energy)

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