As India gears up for general elections in April-May 2024, the interim budget of 2024 carries significant weight for the auto sector, particularly the booming electric vehicle (EV) market. Industry experts eagerly await announcements regarding EV cars, with a specific focus on tax cuts for Li-ion batteries, a crucial component impacting affordability.
Currently, high import duties on Li-ion cells inflate the cost of EVs, making entry-level models (priced below ₹6-7 lakh) challenging for manufacturers. Reducing these duties, as suggested by industry leaders, could significantly bring down car prices, paving the way for mass market adoption.
This aligns with the government’s goal of encouraging EV adoption through subsidies and other incentives. A bold decision on Li-ion cell import duties in interim budget 2024 could accelerate the EV revolution, making greener transportation accessible to a wider audience. Additionally, initiatives like promoting local battery production alongside reduced import duties could create a robust and self-sufficient EV ecosystem in India.
With the budget announcement just around the corner, the industry waits with bated breath for concrete steps towards making EVs truly affordable and accessible for all.
Apart from that, if we look for the cnbctv18.com report, Finance Minister Nirmala Sitharaman may announce a new package worth ₹12,500 crore for electric mobility players in the interim Budget 2024. It has been also speculated that new FAME III scheme will be announced which will have a tenure of two years. However, the subsidies per vehicle under the FAME III scheme are likely to be lower as compared to FAME II.
An update on Interim Budget 2024 for EV….
Noting has been proposed by Finance Minister regarding EV battery import duties, and no announcement made regarding the 18% GST cut on charging electric vehicles. But she gave a hint that government is all set to built a better and top-class infrastructure for the electric vehicles.
She did highlight that the initiative to support crore households under the rooftop solar installation scheme will have a positive impact on the EV charging ecosystem. This is because the surplus electricity generated from these solar panels can be used to power EV charging stations, creating opportunities for entrepreneurs and skilled workers in the installation and maintenance of these stations
The union budget announced on Feb 1, 2024 and in this government just announced to built better EV charging infrastructure which will help to curb pollution and reduce dependencies on fuel.
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