2024 Auto Industry’s Budget Optimism, Quote from RACE Energy

“The infusion of funds within the FAME scheme highlights the government’s dedication to promoting the widespread adoption of EVs. However, it’s crucial to acknowledge battery swapping’s pivotal role in this growth. Presently, a notable disparity exists in the GST rates between EVs sold with fixed batteries (taxed at 5%) and the lithium-ion batteries utilised for swapping purposes (taxed at 18% when sold separately). With the Interim Budget announcement in February, we’re also expecting GST parity for EV batteries used in swapping—crucial for competitive pricing—and they should hopefully align with the 5% bracket to fortify the EV landscape. We also hope that the registration process and subsidy mechanism for battery swapping vehicles will be defined under the guidelines of the FAME scheme.”

Attributed to Arun Sreyas, Co-Founder, RACE Energy