Interim Budget 2024: Govt to boost EV growth with supportive infrastructure

Union Finance Minister Nirmala Sitharaman on Thursday presented the interim budget 2024, in which she announced that the Indian government will continue to boost the growth of electric vehicles in the country by supporting the manufacturing and EV charging infrastructure. She said that the electric vehicle ecosystem will be expanded across the country in the coming days.

In her budget speech, Sitharaman also said that there will be a focus on greater adoption of electric buses by payment security mechanisms. However, there was no detailed announcement made to address the demands and woes of the Indian auto industry. The Indian government has been focusing on the growth of electric vehicles in the country over the last few years. Besides that, the government has been also emphasising the growth of other cleaner and greener powertrain solutions.

While delivering her budget speech, Sitharaman didn't give any clear indication about any sops for the automobile manufacturing industry or the electric vehicle industry. “Entrepreneurship opportunities to a large number of vendors for supply and installation, employment opportunities for youth with technical skills in manufacturing, installation and maintenance," she added while speaking about the charging infrastructure of electric vehicles, which didn't clearly indicate any move from the government.

No FAME scheme extension

Despite this being the interim budget, the auto industry expected the announcement to be cheered up. A major expectation from the auto industry was an extension of the FAME scheme to further support the electric vehicle industry in the country. However, the budget speech had no mention of that.

The Indian government has previously introduced duty changes in the past to give impetus to the electric vehicle industry. To boost local electric vehicle manufacturing, the government previously announced an extension in customs duty concession for lithium-ion cells till September 2024. However, Thursday's interim budget had no significant announcement for the auto industry at large.