We believe import substitution is critical if we want e-mobility to be sustainable. Over $5-10 billion can be saved if we produce raw material from recycling. The government should adopt fiscal policies that encourage recycling. Further, we see gaps in the battery ecosystem which is one of the costliest components of EV. Lithium-Ion Batteries need to have a 5% GST regime to normalise them with EVs. Finally, we absolutely appreciate the government's execution of FAME 2 (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles). Subsidies are helping the ecosystem considerably and we would want the government to extend this scheme to 2025.
(The author is founder and CEO at Lohum)
(Published 27 January 2021, 15:51 IST)
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