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Union Budget charges up EV sector with key moves towards affordability

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The Union Budget presented by Finance Minister Nirmala Sitharaman on Tuesday laid out measures to spruce up the EV industry in India by making the raw materials needed for manufacturing lithium-ion batteries cheaper. 

India will exempt customs duty on 25 critical metals that previously had tax rates ranging from 2.5% to 10% and cut basic customs duty on two minerals—ferro nickel and blister copper. 

Lithium battery manufacturing uses nickel, cobalt, and lithium. However, India does not mine any of these minerals, forcing companies to import them for battery production. 

A tax cut would help these companies procure the raw materials at a lower price, making batteries more affordable and an attractive alternative to Indian consumers. 

“The removal of customs duties on critical rare earth metals like lithium, nickel, and cobalt is a pivotal step in reducing battery manufacturing costs in India,” Aayush Goyal, MD & CEO of RCRS Innovations Limited (RCRSIL), told YourStory.  

“The Union Budget proposed to fully exempt customs duties on 25 critical minerals and reduce BCD on two of them, which will make Battery Energy Storage Systems (BESS) and Electric Vehicles (EVs) more accessible and affordable. With lower raw material costs, manufacturers will be able to enhance efficiency and foster innovation,” Goyal added.

The Indian EV market is expected to grow at a compound annual growth rate (CAGR) of 49% from 2022 to 2030, according to think tank NITI Aayog. The government has put in place a target of achieving 30% EV market share by 2030, as part of the country’s measure to achieve net zero vision by 2070. 

However, customers are cautious about the high upfront costs for EVs compared to their gasoline counterparts, which are partly propelled by the high price tags of EV batteries. 

“Batteries make for around 30-40% of the cost of an EV so as per estimates, this exemption on custom duties could bring down battery cost by 25%. This will have a ripple effect and ultimately make EVs more affordable for the consumer,” Samrath Singh Kochar, Founder and CEO of Trontek, told YourStory

Kochar added that reducing the financial burden on battery manufacturers can help accelerate the transition to cleaner energy solutions, benefiting end consumers with more affordable and efficient EV options. 

The Budget laid out plans to set up a Critical Mineral Mission to promote domestic production, recycling, and overseas acquisition of critical mineral assets. 

“Facilitating overseas acquisitions of critical mineral assets and upcoming offshore mineral auction rounds may further bolster India’s position in the global supply chain and contribute to its self-sustainability,” said Bhuvneshwar Pal Singh, Chief Financial Officer of Maxvol Energy, told YourStory. 

Additionally, Singh said the withdrawal of the 2% equalization levy on e-transactions is anticipated to drive growth in the automobile sector and significantly impact India’s EV market by reducing production costs and enhancing competitiveness. 

The government has also introduced many schemes and policies to provide subsidies for EVs, including FAME II, none of which saw any mention in the latest Union Budget. This includes the anticipated rolling out of a new phase of FAME, which YourStory had previously reported to have a budget outlay of Rs 10,000 crore, similar to FAME II. 





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BrowserStack launches AI-driven Low Code Automation tool

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Software testing platform BrowserStack has rolled out Low Code Automation, a solution to simplify test automation for quality assurance teams, developers, and non-technical users. 

The newly launched solution will address challenges faced by software teams, including manual testing delays and complex automation frameworks, BrowserStack said in a statement. 

While traditional test automation requires coding expertise by often limiting non-technical testers to contribute, this tool allows user—irrespective of their technical background—to create and manage AI-driven automated tests without writing code. Users can also use BrowserStack’s cloud infrastructure for reliable test execution.

“(The AI-powered Low-Code Automation (LCA) simplifies the process of building and maintaining test automation suites compared to traditional tools like Selenium. It reduces the steep learning curve and complexity often associated with automation projects, leading to a quicker return on investment (ROI),” Chintan Doshi, Director of Product Management at BrowserStack, told YourStory

To support development teams worldwide, Low Code Automation speeds up testing cycles, boosts product quality, and enhances user experience by reducing technical barriers. 

“Citizen testers—such as business analysts, product managers, and customer support teams—can easily add validations and create automated tests with the test recorder, without requiring coding skills. This reduces their dependency on developers and QAs and empowers them to actively contribute to testing efforts,” Doshi explained.

Founded in 2011 by Ritesh Arora and Nakul Aggarwal, BrowserStack provides a cloud-based platform for developers to test websites and mobile apps across devices, operating systems, and browsers on demand.

With headquarters in San Francisco and Mumbai, the company has expanded its product line to include over 15 products, of which 10 were launched in the past 18 months.

In August, the Accel-backed firm acquired Berlin-based Bird Eats Bug, an advanced bug-reporting tool. The acquisition aims to address the existing gaps in bug reporting and streamline fragmented testing workflows.





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Flipkart’s delivery arm Instakart reports widening losses, lower revenue in FY24

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Flipkart’s delivery service arm Instakart’s FY24 losses increased multifold to Rs 1718.4 crore, from Rs 324.6 crore in the previous year, hurt by higher expenses and marginally lower revenues. 

The company, which is in the logistics, warehouse, courier and allied services business, clocked an operating revenue of Rs 12,115.3 crore in FY24, 5% lower than Rs 12,787.4 crore it posted a year ago, according to filings made with Toefler. 

During the period, the company’s total expenses increased 6% to Rs 14,149.4 crore, mainly driven by employee benefit and other expenses. 

Logistics services accounted for the majority (about 78%) of Instakart’s total operating revenues, with Rs 9,429.8 crore, marginally lower than what it collected in the previous year.

Warehousing services, which accounted for about 10% of total operating revenues, witnessed a 28.4% drop in revenue, while collection services, which accounted for 12%, remained stable. 

Just a week ago, Flipkart Internet reported a 21% rise in FY24 revenue at Rs 17,907.3 crore helped by rising income from its advertising services.

Flipkart India Ltd, which is Flipkart’s business-to-business (B2B) arm, reported a 26.4% rise in revenue from operations at Rs 70,541.9 crore in FY24. 





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Google Cloud to boost support for early-stage AI startups with new programmes, partnerships

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Google has rolled out a range of programmes and partnerships to accelerate the growth of AI startups In India. The initiatives, announced at an AI Startups Summit in Bengaluru, will support early-stage AI founders in building, scaling, and expanding their customer base through the utilisation of Google Cloud services.

 

The tech giant recently introduced Emerging ISV Partner Springboard—a 12-week programme designed to fuel growth for AI startups. Participants will benefit from hands-on support in creating go-to-market assets, consultations with Google AI experts for product refinement, guidance on technical architecture best practices, and streamlined onboarding to Google Cloud Marketplace. 

“Google is committed to empowering AI startups to drive innovation and growth. These initiatives demonstrate our dedication to providing critical support and resources to early-stage founders, helping them build and scale successful AI-powered businesses,” said Manish Gupta, Senior Director, Research, Google DeepMind. 

During a fireside chat at the Global Google Cloud Summit, Google Cloud CEO Thomas Kurian applauded startups leveraging AI and cloud technology

“At Google Cloud, our mission is to support these pioneers by providing the essential tools, resources, and mentorship they need to thrive. Through strategic partnerships, tailored programs, and advanced infrastructure, we are committed to enabling businesses to scale their impact and drive the next wave of digital transformation,” said Kurian. 

Early-stage founders will receive enhanced support through the Google for Startups Cloud Program, which will offer $200,000 in Google Cloud credits over two years. AI-based startups will receive even greater support, receiving $350,000 in credits to address the demanding computational needs of advanced AI development, the company said in a statement. 

In addition, Google has collaborated with Y Combinator to provide exclusive access to NVIDIA H100 GPUs and Google Cloud TPUs, along with cloud credits, support, and mentorship for its Summer 2024 group of AI-focused startups.

Furthermore, the tech giant is also joining forces with early-stage accelerators and incubators such as 500, StartX, and Berkeley Skydeck to provide early-stage founders with a special package, including Google Cloud credits, expert advice, and technical workshops

Earlier, the California-headquartered firm also announced the launch of Startup School: GenAI, a four-week training programme designed to help startups leverage AI.





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