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Reaction on Interim Budget 2024-25 – EV, Auto Startup Quantum Energy

Mr. Chakravarthi C. – Managing Director – Quantum Energy 

“The emphasis on eco-conscious initiatives in the previous budget, with environmental sustainability among the top 7 priorities, set a commendable precedent. In today’s budget, this commitment is not only sustained but elevated, reflecting a clear understanding of the urgent need to address environmental challenges. 

While applauding the positive aspects of the interim budget, we note certain expectations that remain unmet. The imminent expiration of the FAME II subsidy program by March 2024 sparked hopes for its extension, aligning with the government’s ambitious 2030 target of 30% electric vehicles on Indian roads. An extension would have solidified support for the EV industry. Furthermore, a substantial reduction in GST on lithium-ion battery packs and cells, from 18% to 5%, would have alleviated manufacturing costs, making EVs more competitively priced and boosting consumer adoption. The absence of a standardized policy for the battery-swapping market is also a missed opportunity. A unified policy would enhance safety, streamline charging infrastructure, and create a more reliable and secure environment for EV users. As we look forward to the full budget post-general elections, we hope these crucial aspects receive due consideration for the sustainable growth of the electric vehicle sector.”

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