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Budget 2023-24; Electric Vehicle Industry

The EV industry celebrates reduction on customs duty for lithium cells and subsidy extension on batteries announced in the Union Budget 2023-24 by Finance Minister Nirmala Sitharaman on 1st of February 2023.

EVs will be cheaper:

This new policy is likely to reduce the cost of EVs and increase the product lineup as well.

More focus on flex-fuel vehicles:

Ethanol; used in the manufacture of industrial chemicals, will see a boost in production and the government expects vehicles to be fully flex-fuel-ready by 2025. The cars are required to be ethanol-material compliant from April 2023.

Emphasis given to vehicle scrap policy:

The finance minister stated that more funds will be allocated to scraping old vehicles, including ambulances of the central and state government. As for the masses, there is no change in benefits for the scrapping of private vehicles, however private manufacturers will benefit.

'The policy on the replacement of old polluting vehicles should accelerate the transition towards electric vehicles, which is in line with the budget’s aim to spur eco-conscious lifestyles,' says an industry expert.

These are welcome initiatives that will help boost the demand for all types of EVs.

The electric vehicle industry has seen slow but steady push from the government in the last few years. The demand for EVs is on the rise and increase in acceptance of new technology has been steadfast. The government has shown real interest in promoting and even ensured many vehicles switched.

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