Even as India has lined up an ambitious plan to promote EVs, the availability of top quality lithium-ion batteries remains a pain point for EV firms, since local manufacturing is yet to take off and they have to depend on China for imports. Beside this, several raw materials used in EVs such as nickel, cobalt and battery-grade graphite needs are imported.
To promote local manufacturing, the Centre had significantly hiked customs duty on imported products last year.
Ola Mobility Institute, in a note on its pre-budget expectations, said that as India marches to become a global hotspot for electric mobility, a critical step in that direction is recognising battery-swapping as a viable charging mechanism for two- and three-wheelers.
“This requires policy interventions such as including battery-swapping in FAME-II, treating EVs and batteries as separate entities and extending demand incentives for both, reduction of GST on Li-ion batteries and earmarking funds for R&D to develop batteries locally,” Ola said.