Budget 2022: EV financing needs to be integrated into priority sector lending
Making an impact through business
VA-YU’s is in the business of Electric scooter rentals and our venture is geared towards solving a number of challenges of recent years. So whether it is the global pollution levels or the unemployment problem in India or the delivery of goods and services at home during covid, our rental vehicles are making an impact in peoples lives. As a business we are doing extremely well, with demand in excess of what we can fulfill.
Flourished during Lockdowns
Our business has done very well during the lockdowns, primarily because we have been listening to our customers’ needs and adapting our service accordingly. Our customers have lost jobs and are low on cash, so we have kept minimal upfront costs and very low rentals. Also, we provide express service to our customers so that their business or job is not impacted because of any breakdowns.
Our expansion will be fueled by additional packages
Electric vehicles are a major disruption and in a country with over 20 crore two-wheelers, a large amount of finance is required for the vehicles as well as support infrastructures like repairs and charging. Therefore the government has a major role to play in removing financial bottlenecks and in bringing EV financing into priority sector lending.
2022 to be the year of recovery in general
2022 will be the year of recovery and bounce back for the economy as a whole. This will create growth and opportunities across sectors. Mobility as a sector is an enabler for this growth because mobility opens up opportunities for people. Therefore we at VA-YU are very enthusiastic about the EV sector and the rental EV sector for the year 2022.
Expectations from Budget & policies
The government can play a major role by bringing EV into priority sector lending and by financially supporting start-ups in this sector. GST on battery packs should be aligned with the GST on EV’s and the government should implement a cohesive strategy for the domestic manufacture of EV batteries. And lastly, while tax incentives are offered to individuals on EV purchase, the same should also be available for corporates and start-ups. The government has taken a number of initiatives like FAME and state EV policies to incentivize the EV industry. However, a lot of these schemes are direct subsidy schemes that have a limited impact for the sector. The sector would be much better served with non-monetary incentives for domestic production and for promoting startups in this space. Also, the policies have to keep pace with innovations on the field. Lastly, the sector should be regulated by a dedicated apex body with a focus on EV’s only. We still find a number of low-quality products, warranty breaches, and unscrupulous practices in the field, which if not controlled can erode consumers’ confidence.
Major brands are now entering the market
The most exciting trend for us is the number of EV two-wheeler launches taking place across the industry from big brands. This brings in a level of trust and credibility which had been missing from this sector till now. Such launches are also great at capturing consumers’ excitement and mind space.
Founder and CEO of VA-YU