If there was any further evidence needed that India could emerge as a major electric vehicle (EV) centre, the government there has slashed GST on EVs by more than half.
Reuters has reported that the Indian government has lowered the GST on electric vehicles and chargers to 5 percent — down from the previous marks of 12 percent and 18 percent respectively.
India is struggling to keep emissions in check, and is currently the third-largest emitter of greenhouse gases and home to 14 of the world’s most polluted cities.
According to a statement from the country’s finance minister, Nirmala Sithraman, the government is aiming for EVs to make up 30 percent of all passenger vehicles by 2030.
They currently make up less than one percent, thanks to a lack of charging infrastructure and high costs.
But, the government support for the industry is slowly changing that picture.
For example, last week industry think-tank IDTechEx predicted that the electric bus market in India could boom — offsetting weakness in the Chinese market.
Sithraman has also previously stated the government’s desire to become a manufacturing hub for electric vehicle manufacturing — and this would mean large lithium storage battery manufacturing facilities.
This is likely to be music to the ears of lithium miners, but less so to other jurisdictions such as Europe who are increasingly worried by increased competition for manufacturing capacity.
The European Investment Bank, for example, has repeatedly sounded the alarm on other countries dominating the manufacture of electric vehicles and lithium batteries.
The Indian desire to get more involved will only make lawmakers in Europe more focused on securing supply.
That’s a boon to lithium miners such as Infinity Lithium (ASX:INF), which have worked hard to prove up a lithium supply within Europe.
It has a 75 percent stake in the San Jose Lithium Project in Spain, with the project to be developed using an open pit with the lithium then to be treated and processed on site.
Infinity’s goal in the long term is to supply the European lithium-ion battery supply chain and EV industry, and news of India trying to sure up the demand side of the picture by trying to make EVs cheaper for end users is sure to re-focus efforts in Europe.
This content is produced by Star Investing in commercial partnership with Infinity Lithium. This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
Don’t miss a thing, subscribe now