With the Union Budget 2025 on the horizon, electric two-wheeler (e2W) players are urging the government to introduce critical policy measures and incentives to revitalise the sector.
Key demands include relooking at the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) scheme, reduced goods and services tax (GST) rates across the entire EV ecosystem, providing targeted subsidies and innovative financing models. Some others are strengthening domestic battery manufacturing, expanding charging infrastructure, and incentivising the electrification of last-mile delivery.
Industry players also emphasised the need for consistent policy support, and investments in skill development to ensure the long-term sustainability of the electric vehicle (EV) ecosystem in India.
One of the most pressing demands include calling for targeted subsidies and innovative financing models to make EVs more accessible.
An industry expert highlighted the need for accessible financing options to make EVs affordable for both urban and rural markets.
“Consumer-focused initiatives, such as financing options, are crucial for driving EV adoption across India,” she added.
She also called for a uniform 5 per cent GST rate across the entire EV ecosystem, particularly for lithium-ion batteries, to reduce costs and make EVs more affordable.
In addition to targeted subsidies, players are also calling for revitalisation of the PM E-DRIVE scheme, which has played a crucial role in supporting the sector’s early growth.
The scheme’s revitalisation is seen as essential to maintaining the momentum gained by the industry, particularly amid challenges like declining funding and policy uncertainties.
The founder and CEO of Rilox EV, stressed the importance of ensuring consistent policy support, particularly in light of the scheme’s revised guidelines, which have adversely impacted the two-wheeler segment.
“Revitalising the PM E-DRIVE scheme is of paramount importance to boost investor confidence and provide a clear roadmap for the sector’s growth,” he said.
The electrification of last-mile delivery, which has become increasingly important, is another key area of focus.
The co-founder and CEO of Zypp Electric, recommended the government to allocate a budget for electric vehicles, including two- and three-wheelers, and mandate a 100 per cent electric logistics fleet by 2030.
He also proposed extending the GST structure for EV purchases to last-mile logistics services and introducing a per-km or per-CO2 emission subvention scheme to incentivise aggregators to expand their EV fleets.
To ensure long-term sustainability, players are also calling for increased investments in domestic manufacturing, particularly in key EV components like batteries and powertrains.
The director and CEO, Godawari Electric Motors, said, “Introducing policies to strengthen domestic capabilities in critical EV components will help reduce India’s dependence on imports and boost self-reliance in the sector.”
He also emphasised the need for strategic investments in EV charging infrastructure, particularly in semi-urban and rural areas, to address the gaps in accessibility.
Alongside manufacturing and infrastructure, fostering a skilled workforce is seen as critical to the future of India’s EV sector.
As the industry grows, it will require a pool of skilled workers to support EV production, maintenance, and innovation.
Experts highlighted the importance of investing in skills development to ensure that India’s EV ecosystem remains competitive in the global market.
All the players also emphasised the need for consistent, long-term policy support to sustain the sector’s growth.
The founder and managing director (MD) of BGauss, pointed out that innovation in battery technology and vehicle design is key to driving the sector forward.
He added, “We hope the Budget will introduce measures that drive innovation, leading to more efficient and affordable electric two-wheelers that are made in India.”
