Mumbai: With Mumbai witnessing 17% growth in Electric Vehicle (EV) population over the past 10 months, the exemption to Li-Ion batteries and other capital goods in the Union budget is expected to further boost sales in the city. It will significantly reduce battery costs and encourage investment in domestic battery manufacturing, experts noted on Saturday after the announcement by finance minister Nirmala Sitharaman.
“Given that batteries make up 30-40% of an EV’s cost, this move will make EVs more affordable and accessible to consumers, driving mass adoption across two-wheelers, three-wheelers, and four-wheelers alike,” said Dinesh Arjun, CEO of Raptee HV, a company manufacturing electric bikes and batteries for their own vehicles.
“These initiatives will further strengthen mobility industries’ sustainability goals by enabling a smoother transition to electric mobility while leveraging solar-powered EV charging infrastructure, ensuring an eco-friendly and cost-effective transportation network,” said Ashok Vashist, CEO of WTiCabs, which provides EV transportation services in India. From a total of 35,379 EVs registered across the city till the last financial year to 41,374 as of Feb 1, there was 17% growth in the e-vehicle population in Mumbai over 10 months. The total number of electric car registrations in the city has now exceeded the 12,000-mark, while the e-bike population is double at more than 24,000, latest statistics revealed. Across state, the total EV population is now approaching 5.5 lakh. One of the factors influencing buyers for EV adoption is the enhancement in the range of some of the latest electric cars. “New variants of e-cars in the market have better mileage and eliminate range anxiety for a long journey,” said a transport analyst. Citizens, however, demanded improved infrastructure, such as establishing charging facilities at every petrol station and along crucial arterial roads.
Kunal Arya, MD, ZELIO E Mobility Ltd, an EV manufacturer, said: “The absence of concrete measures to support long-term subsidies for EVs and a reduction in GST on spare parts remains a missed opportunity for accelerating mass adoption.”
