India's EV Ecosystem Seeks Continued Support Ahead of Union Budget
India's electric vehicle ecosystem is urging the government to maintain a 5% customs duty on lithium-ion cell imports and provide subsidies for electric three-wheelers in the upcoming Union Budget. While OEMs are adapting to supply challenges, concerns over limited domestic production persist, prompting calls for capital allocation to boost local battery manufacturing and support for lithium-ion battery recycling. As demand for electric vehicles rises, the industry continues to heavily rely on imports.
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India's electric vehicle ecosystem is requesting support in the upcoming Union Budget, including continued 5% customs duty on lithium-ion cell imports and subsidies for electric three-wheelers (E3W). OEMs are adapting to supply challenges, but limited domestic production remains a concern.
The ecosystem advocates for capital allocation to enhance local battery production and hopes to maintain parity with petrol-run E3Ws. There are calls for policy support for lithium-ion battery recycling and lifecycle performance metrics in fiscal frameworks. The demand for electric vehicles is increasing, but the industry continues to rely on imports.
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