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Oben Electric Advocates For EV Sector Reform In India's 2024 Budget
Oben Electric sees the 2024-25 Budget as a pivotal moment to accelerate India's electric vehicle (EV) sector. A major concern is the inverted duty structure in the two-wheeler segment. Currently, manufacturers face cash flow issues due to higher GST rates on raw materials (18-28%) compared to the lower GST rate on final vehicles (5%). This disparity increases working capital needs and costs.
Addressing this imbalance could reduce costs for manufacturers and consumers, promoting faster EV adoption. Oben Electric hopes the budget will tackle this issue, aligning with the government's clean mobility vision. Additionally, a standardized GST certification process across states would enhance business operations nationwide.
Focus on Long-Term Sustainability
For long-term sustainability, Oben Electric stresses the need for indigenous manufacturing of EV components. This approach reduces import dependency and supports the 'Make in India' initiative. Encouraging local production strengthens economic resilience and fosters industry growth.
Moreover, training programs for specialized EV technicians and engineers are essential. These programs can develop a skilled workforce to drive the industry forward. Ensuring policy clarity and stability is also crucial for boosting investor confidence and attracting substantial investments in India's electric mobility sector.
Infrastructure and R&D Priorities
Oben Electric advocates for expanding EV infrastructure beyond urban areas. Enhancing research & development in sustainable materials and efficient production techniques is vital. These steps will solidify India's commitment to eco-friendly transportation.
The company also supports a long-term FAME III subsidy scheme with simplified access processes. This would ensure broader participation from EV players without unnecessary hurdles, fostering industry growth.
"We hope the budget will address this disparity to reduce the burden on manufacturers, eventually transferring the cost benefit to the consumer," stated an Oben Electric spokesperson.
By implementing these measures, India can achieve its vision of Atmanirbhar Bharat and Viksit Bharat while emerging as a global leader in electric mobility solutions. The upcoming budget presents an opportunity to propel India's EV sector into a new era of high growth.
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