The setting up of a battery manufacturing plant in India will play a significant role in the expansion of the EV sector, enticing numerous global and local businesses to the race.
Electric vehicles have grown quite popular among regular Indians in recent years, penetrating into every family.
The battery accounts for 40-50% of an EV’s entire production budget. The increased usage of electric vehicles in our transportation system is predicted to increase the consumption of lithium-ion batteries.
Incentives also play an important part in establishing a manufacturing facility, and according to current government information, a substantial quantity of incentives and increments are observed to flow towards manufacturing enterprises via the PLI system.
Setting up these plants will help the government reach the target of 30% of private EV sales by 2030. At the moment imported lithium-ion battery cells attract a GST of 18% while Evs as a whole attracts only 5%.
Elon Musk, the Tesla Ceo in a tweet announced that the company will be initiating in-house battery production leading to having the production cost. Therefore India wants to be a strong hub EV industry it will have to boost its large-scale local manufacturing of batteries.