Budget 2022: Reactions from the EV Industry
“Kudos to Government of India for once again taking the leadership in accelerating the transition to a greener mobility paradigm. The announcement of Battery Swapping policy as a way forward […] The post Budget 2022: Reactions from the EV Industry appeared first on EMobility+.
“Kudos to Government of India for once again taking the leadership in accelerating the transition to a greener mobility paradigm. The announcement of Battery Swapping policy as a way forward to accelerate penetration of EVs is a step much ahead than others and will enable technology-agnostic options for a potential EV customer. Battery swapping technology addresses key challenges around upfront cost, range anxiety and long charging time enabling faster adoption of EVs. As the policy unfolds, it would be great to see the govt addressing key points around how customers can access subsidies (currently available for EVs), range per charge criteria (as swap batteries, by definition, are smaller and with less range) and GST for swapping services in line with EVs. It’s encouraging to see steps being taken on interoperability standards, we are hopeful that the process of innovation is not impacted while defining these new policies for the country and look forward to working with the industry and the govt to making this a reality. SUN Mobility’s battery swapping powered EVs have travelled for over 13 million km on Indian roads and this new policy is further going to accelerate our mission to onboard 1 million vehicles on our platform.”
Chetan Maini, Chairman & Co-founder, SUN Mobility
“The formulation of battery swapping standards and interoperability is a much-needed step in the right direction. There’s been a lot of confusion in the swapping companies, which has dampened EV adoption. Seamless and widespread charging infrastructure is the need of the hour to accelerate the EV revolution in the country. The focus and thought towards the EV sector by the honorable finance minister reflects the government’s poise towards accelerating EV adoption. This will also help us achieve our vision of expanding our battery-swapping network across 100 cities in the next three years I would have loved if GST in battery and spare parts had also been reduced to 5% like it’s there for E-vehicles purchases; this would also help the entire electric vehicle ecosystem.”
Akash Gupta, Co-founder & CEO, Zypp Electric
The Central Government’s constant push for EVs and climate action is commendable, and the same outlook has been resonated in this year’s Union Budget as well. The openness showed by the Government to accommodate new-age business models like battery swapping are a welcome step, and the push to encourage battery- -as-a-service and energy-as -a-service business models will provide further thrust to emerging homegrown startups in these areas. At the same time, financial decoupling of batteries irrespective of swapping has the potential to enable faster adoption. Going ahead, it would be exciting to see some great climate focussed debt lines initiated from blended finance. However, bringing EVs and batteries into the priority lending sector was also expected this time, but was missed in this Budget, which is albeit disappointing to note.
Dr. Akshay Singhal, Founder, Log9 materials
It is encouraging to see the concerted efforts of the government to reduce the carbon footprint in India. We welcome the proposal to promote electrification, with Battery Swapping Policy which also includes the concept of energy/battery as a service. Exclusive EV zones will also be a positive step towards accelerating EV adoption in India. Though it did not find any mention in this budget, we continue to be optimistic about seeing steps towards EVs getting faster access to loans in the PSL scheme.
There is a strong need for a government-mandated standard, defining the residual value for EVs. The absence of this standard is one of the biggest hindrances in acquiring affordable financing to fleet operators and commercial EV manufacturers.
In line with the government’s vision of Atmanirbhar Bharat, we at EVage are creating indigenous products and constantly working towards reimagining mobility to transform lives and businesses.
Inderveer Singh, Founder & CEO, EVage