Budget 2024 in pipeline: Oben Electric seeks EV sector reform

The budget for 2024–2025, is a critical opportunity to boost the electric vehicle (EV) market in India, according to Oben Electric. One of the main issues in the two-wheeler segment is the inverted duty structure. Right now, the higher raw material GST rates (18–28%) compared to the lower finished vehicle GST rate (5%), are causing cash flow problems for producers. 

Due to these discrepancies, the working capital demands and expenses have risen significantly. By taking account of the problem, solving this disparity may lower expenses for both producers and buyers, accelerating the adoption of electric vehicles. As part of the government's clean transportation agenda, Oben Electric believes that this problem will be addressed in the upcoming budget. Furthermore, if states used a uniform GST certification procedure would improve corporate operations worldwide.

Oben Electric highlights that solving this inverted duty structure will mitigate reliance on imports and bolster the 'Make in India' campaign. Promoting domestic manufacturing boosts industry expansion and resistance to shocks. Meanwhile, to further improve the industry, programmes for specialised EV engineers and technicians must also be implemented that can provide a workforce with the necessary skills to advance the sector.

Moreover, enhancing investor confidence and drawing significant investments into India's electric mobility industry also depends on maintaining regulatory stability and transparency.

Oben Electric also advocates for taking the reach of EV infrastructure beyond urban centres to towns and villages. It highlights the necessity to improve research and development in sustainable materials and effective production methods. These actions will reaffirm India's dedication to environmentally friendly transportation.

Additionally, the business offers a long-term FAME III subsidy programme with streamlined application procedures. This would guarantee more EV player engagement without needless obstacles, promoting industry expansion. A representative for Oben Electric said, "We hope the budget will address this disparity to reduce the burden on manufacturers, eventually transferring the cost-benefit to the consumer."

India can become a worldwide leader in electric transportation solutions and realise its goals of Atmanirbhar Bharat and Viksit Bharat by putting these policies into practice. The forthcoming budget offers a chance to usher in a new phase of rapid growth for India's electric vehicle industry.