Union Budget 2022: FADA welcomes govt initiatives to bolster electric vehicle

New Delhi, Feb 1 (KNN) The Federation of Automobile Dealers Associations of India (FADA) has welcomed and shown support to the efforts made by Government towards Electric Mobility in the Union Budget 2022-23 that was presented in the Parliament today.

There is a clear emphasis on creative, sustainable and innovative business models. Battery Swapping & Energy as a Service (EAAS) will surely help accelerate the transition towards Clean Mobilit, opined Vinkesh Gulati, President FADA.

He further said the development of special mobility zones for electric vehicles and promoting clean technology for public transport validate government commitment to E-mobility, which would boost confidence in the EV industry in terms of manufacturing, sales, and create a sense of assurance among customers.
“Union Budget 2022 seeks to lay the foundation for the next 25 years with PM's 'Gati Shakti National Master Plan', it will be a significant step towards path to development,” he added.

The government's plans for developing 25,000 kilometers of new highways will result in a push for infrastructure spending, which will result in an increase in Commercial vehicle sales, as well as an addition of 2,000 kilometers of road under a new scheme known as 'Kavach' will be an additional benefit to the revival of this segment, said Gualati.

The association also appreciated the extension of the ECLG scheme, and called it a remarkable move by the government to support the MSME sector coming out of the slowdown caused by pandemics.

With government plans on 2.3 lakh crore direct payment as MSP to farmers, it will work as a booster for 2 Wheeler, Tractor & entry level PV sector sales, he stated.

However, he pointed out that an additional duty of rupees 2/ litre on unblended fuel from October 2022, could play a spoilsport for the already stressed 2 wheeler industry. (KNN Bureau)