Budget expectation: EV industry seeks lower GST The fast-growing electric vehicle (EV) industry is seeking GST rate cut on components and an extension of the Faster Adoption and Manufacturing Electric (FAME) subsidy scheme from the government in the 2024 Union Budget.

The demand from the industry comes amidst speculations that the Centre may extend the second phase of FAME scheme until the third phase (FAME III) is approved,

“We at Hero Electric are hopeful to see a continued focus on long term policy measures that promote EV adoption such as reduced GST rates, extension of FAME-II subsidies / introduction of FAME-III, and increased infrastructure spending for charging infrastructure.

This will spark consumer confidence and will bridge the affordability gap,” said Naveen Munjal, founder and managing director, Hero Electric.

Hari Kiran, co-founder and COO, eBikeGo, said budget anticipation surrounds on updates related to potential FAME 3 scheme, production linked incentive scheme sops and revisions to GST for two-whillers.

Kiran added that a uniform 5% GST on all EV spare parts, aligned with the 5% GST on vehicles, as they aim for a more equitable tax structure