Accelerating India’s Electric Mobility: What the EV Industry Expects from Union Budget 2025

New Delhi, India (Urban Transport News): As the Union Budget 2025 approaches, India’s electric vehicle (EV) sector stands at a critical juncture. Projected to achieve a market size of ₹20 lakh crore and generate 5 crore jobs by 2030, the industry’s growth hinges on bold policy measures and financial incentives. Here’s a detailed exploration of the EV sector’s expectations and the transformative potential of this year’s budget.

Key Expectations from Industry Leaders

The EV industry is brimming with potential, but its trajectory depends on targeted support from the government. Below are the key expectations voiced by industry leaders:

1. GST Parity Across Components

   A unified 5% GST rate on EVs, batteries, and charging infrastructure is a top priority. Industry leaders believe that simplified taxation could significantly reduce costs and encourage adoption across segments.

2. Strengthening FAME II and PLIs

   The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme has been instrumental in driving EV adoption. Extending its provisions and introducing Production Linked Incentives (PLIs) for domestic EV manufacturing are critical to scaling local production.

3. Financing Accessibility

   Affordable financing remains a challenge for the EV industry. Including EVs under priority sector lending would lower interest rates and improve affordability for both individuals and businesses.

4. Rural Inclusion

   Expanding EV adoption to rural areas is essential for equitable access to clean mobility. Subsidizing rural charging networks could make EVs a viable option for non-urban populations.

5. Digital Innovation Support

   Investment in digital infrastructure, including subsidies for cloud services and software innovation, would enhance EV integration into Smart City frameworks and streamline operations.

Anticipated Impacts

The EV industry’s growth is expected to have far-reaching effects on the Indian economy and environment:

• Economic Savings: Reducing oil imports could save India $330 billion by 2030.

• R&D Leadership: Investments in battery technology and recycling could position India as a global leader in EV innovation.

• Infrastructure Expansion: Developing climate-resilient charging networks would foster energy independence and sustainable mobility.

Insights from Industry Leaders

To gain a comprehensive understanding of the EV industry’s needs, here are detailed quotes from prominent leaders:

Abhijeet Sinha, Project Director, National Highway for EV (NHEV): “Budget 2025 aims to advance India's electric mobility by simplifying taxes, reducing GST on EV batteries, and funding 5,500 km of electric highways under the NHEV project. Support for battery storage, swapping, and the 'Battery as a Service' model focuses on energy management, with climate financing crucial for scaling infrastructure.”

Uday Narang, Founder, Omega Seiki Mobility: “The EV industry eagerly anticipates incentives for E-trucks, affordable three-wheelers, and expanded charging infrastructure, especially in rural areas. Addressing high interest rates and financing challenges is crucial to driving widespread adoption and accelerating India’s transition to sustainable mobility."

Prateek Kamdar, Co-Founder & CEO, Neoron Energy: “The Union Budget 2025 is crucial for India's EV industry, projected to hit Rs 20 lakh crore and create 5 crore jobs by 2030. GST parity on EV batteries, extending FAME II incentives, and prioritizing charge point operators under priority sector lending can accelerate adoption and infrastructure growth. Supporting local battery manufacturing and fostering global collaborations will position India as a leader in the EV ecosystem."

Tamal Das, CEO, Dawki Mobility: “The Union Budget 2025 holds the key to accelerating India’s electric mobility transition, potentially saving $330 billion on oil imports by 2030. Key demands include a uniform 5% GST on EVs, components, and charging infrastructure, alongside reduced EV loan interest rates to enhance affordability and drive adoption," said Tamal Das, CEO, Dawki Mobility."

Amit Bhatt, Managing Director, ICCT India: "India’s clean transport journey advances with the PM eDrive initiative, but financing remains a challenge due to EVs' high costs. Including EVs in the priority sector lending framework in the upcoming budget could greatly boost their accessibility and adoption."

Dr. Lalit Singh, Co-Founder & CEO, Telioev: “India’s Union Budget must prioritize digital infrastructure in the EV sector by reducing GST on software services, subsidizing cloud costs, and fostering collaborative projects. Integrating EV software with Smart City initiatives will streamline operations and drive a connected, sustainable mobility ecosystem, positioning India as a global EV software leader."

Raman Bhatia, Managing Director, Servotech: “As the Union Budget 2025 approaches, I foresee transformative measures for the EV sector: expanded PLIs, tax breaks, and subsidies for domestic manufacturing, a uniform 5% GST rate, an expanded FAME II scheme, a dedicated fund for rural charging networks, streamlined approvals, interoperability standards, public-private partnerships, and robust skill development programs to bolster India's EV ecosystem."

Dr. Rashi Gupta, Founder, Vision Mechatronics: “The upcoming budget should focus on a policy for second life batteries, skill development for EV technicians, and promoting battery swapping and charging infrastructure. Supporting R&D in advanced battery technologies, securing raw material supply, and boosting domestic manufacturing will strengthen India's EV ecosystem and position it as a global leader", said Dr. Rashi Gupta, Founder of Vision Mechatronics, 'Batterywali of India."

Randheer Singh, CEO & Founder, Foresee Advisors: “The budget is a lodestar for the EV industry’s trajectory. My expectation is simple yet profound: focus on building a robust ecosystem. Incentivize battery manufacturing, recycling, and green financing. Expand charging infrastructure with priority on reliability. Reduce import dependencies with clear policies and upfront incentives for startups to build local supply chains. A bold move here can shape India’s EV future—not just for today, but for decades."

Driving the Future of Clean Mobility

The Union Budget 2025 holds the power to redefine India’s EV trajectory. From GST reforms and digital innovation to robust infrastructure development, the proposed measures could accelerate India’s journey towards sustainable and inclusive mobility—securing its position as a global leader in the EV revolution.