Innovation and research will be key in pushing down costs and improving efficiency of electric vehicles (EVs) and the government is supporting research initiatives in battery technology, charging infrastructure and recycling, HD Kumaraswamy, Minister for Heavy Industries (MHI) and Steel, said on Tuesday.

“We are seeing valuable exchanges in areas like battery recycling, gird integration and software-driven efficiency, all of which are strengthening India’s position in global EV landscape. Electric vehicles represent not only an environmental commitment but a transformative shift for India’s economy, industry and society. The government is committed towards this vision and is implementing measures to strengthen the EV sector’s foundation,” he said.

Battery manufacturing

Kumaraswamy also said the MHI is working on strengthening the component manufacturing ecosystem for batteries in an effort to bring down the costs of vehicles.

“We are looking at how major components, like anode, cathode, foil manufacturers and OEMs (original equipment manufacturers) can come together,” he added.

Speaking at the FICCI National Conference on Electric Vehicles here, Tarun Kapoor, Advisor to the Prime Minister said the government will consider all aspects, including taxation issues so that the industry remains viable.

“In case of four wheelers, the industry itself has to play a much larger role than the government because we need more products. We need better products and we need more publicity...the government is fully supportive and there is a need to look at GST on batteries and charging stations,” he said.

Fillip for EV sales

He noted that India eyes increasing EV sale penetration by 30 per cent by 2030.

“In case of two wheelers, we should have higher targets and a complete replacement in this segment. For three wheelers as well, the switch has to be 100 per cent, at least in some cities,” Kapoor said.

Meanwhile, FICCI Electric Vehicle Committee Chair Sulajja Firodia Motwani urged the government to reduce GST on batteries and charging services, in order to keep EVs competitive. She also underscored the need to enhance Prime Minister Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE) corpus to support enhanced sales of EVs.

“Currently, 18 per cent GST is levied on charging services – which we request to bring down to five per cent so that charging becomes more affordable. The GST on batteries should also be reduced to five per cent,” Motwani, who is also the founder and CEO of Kinetic Green Energy & Power Solutions, added.

Related Topics