By Shubhangi Bhatia
New Delhi: All eyes are set on the upcoming Union Budget 2020. In-line with PM Modi’s ‘Startup India scheme, following are the major wish-list of the auto sector startups.
EV financing
“Government needs to instruct the retail banks to provide financing for electric vehicles, perhaps at a lower rate than ICE units. It should refund the GST from whatever components the auto companies are currently purchasing,” according to Ayush Lohia, CEO, Lohia Auto Industry.
Prerana Chaturvedi, CEO & ED, Evolet also said, “Unlike the conventional automobile sector, financing has been a major concern for EV industry as nationalised banks are currently not offering any financial help over electric vehicles.”
Adding to that Kadam Shah of Vidhyut EV also stated that EV financing becomes the biggest hurdle as most of the last mile connectivity partners are startups.
GST on raw materials is still a concern for manufacturers in addition to the import duty on technologies for e-drivetrain and other EV related products.Prerana Chaturvedi, Evolet
GST reduction on raw materials
Battery forms 50 per cent of the cost of an electric vehicle, yet attracts GST of 18 per cent. Government’s support for localisation of battery technology can go a long way, feels the EV players.
Prerana Chaturvedi of Evolet said, “GST on raw materials is still a concern for manufacturers in addition to import duty on technologies for e-drivetrain and other EV related products.”
“For startups it will be a great deal if the government does some kind of tie-ups for li-ion cells, electronics parts companies, which can cut costs substantially and MOQ for the raw materials,” she added.
Jaibir Siwach, CEO of Kabira Mobility said, “We expect the FM to incentivise the li-ion battery and hub motor manufacturers so that the cost of the vehicles can be controlled and the immediate benefit can be passed on to the customers.”
Single window policy
There should be one country one tax and policy reform to simplify inter-city mobility of goods and services, feels Shailesh Gupta, CEO, YOLO Travel Tech.
Shah, Vidhyut EV also said, “We request the government to keep a simple GST structure of five per cent as input of parts are between 18 to 28 per cent and output is five per cent, which results in a huge capital block for OEM’s like us.”
Siwach of Kabira Mobility added, “We recommend having a single-window clearance policy for the electric vehicle project with the uniform tax rate of 5 per cent or nil. This will speed up the documentation and clearance process and also lead to the healthy competition among the EV players.
Investments in R&D
The government should encourage private players to invest in research and development projects with tier-I and II universities, and campuses across the country. This will create local talent and reduce our reliance on other countries for the import of advanced electronics and battery technology, Chaturvedi of Evolet opined.
In this budget session, the government should allot legal status to documents such as Electronic Proof of Delivery (E-PODs) and Digital Proof of Delivery (D-PODs).Sachin Haritash, Founder & CEO, Mavyn
Digital Initiatives
Over the years, the extensive use of technology has transitioned logistics to becoming an organized business sector in India. Digital initiatives have proven to be time and cost-efficient.
Sachin Haritash, Founder & CEO, Mavyn said, “In this budget session, the government should allot legal status to documents such as Electronic Proof of Delivery (E-PODs) and Digital Proof of Delivery (D-PODs) since the business is now becoming digital. In sync with Digital India, e-bills and receipts are the next natural steps.”
FDIs
“The sector needs infusion of funds from foreign investors which will provide the necessary impetus,” said Haritash of Mavyn.
