Union Budget 2023: Electric vehicles to be cheaper?

While presenting the Union Budget 2023, Finance Minister Nirmala Sitharaman announced that the subsidies on Electric Vehicle batteries will be extended for 1 more year, making EVs cheaper in India. 

"I propose to continue the concessional duty on lithium-ion cells for batteries for another year", said FM Nirmala Sitharaman.

The government will no longer levy custom duty on parts that are used to make batteries for electric vehicles, which will have a direct impact on the prices of electric vehicles. 

No custom duty to be paid
The budget sees the biggest announcement for the auto sector in 2023 for electric vehicles. The government has removed custom duty on equipment that is used to make lithium-ion batteries used in electric vehicles.

INR 35,000 crores to promote Green Energy
The government's goal of green mobility is now clearly visible with this huge fund. Now, the government is trying to move rapidly towards bio-fuels by reducing the dependence on conventional petrol-diesel vehicles. For which, the government has already set its sight on zero-carbon neutrality.

INR 19,700 crore for green hydrogen
Along with electric vehicles, a provision of INR 19,700 crore has been made in the budget for green hydrogen. Through this, the government is trying to achieve the target of 50 lakh tonnes of production capacity by 2030.

• Subsidies to both buyers and manufacturers of electric vehicles to encourage electric mobility
• Replacing old vehicles with new vehicles to reduce pollution
• Scrapping of old vehicles through scrap policy
• Emphasis on making automobiles more affordable
• Import duty free for materials used to make electric batteries
• Keeping import duty free of materials used to make electric batteries
• Strive to achieve the goal of net-zero carbon by 2070