In the Union Budget 2019, the import duty for electric vehicle components has been reduced from 15-30 per cent to 10-15 per cent.
The Union Budget 2019 has commenced and we wait for updates on the automotive sector. The latest news is that the import duty on electric vehicle components has been reduced to 10-15% from a high 15-30%.
The Central Board of Indirect Taxes and Customs (CBIC) has lowered the duties as to promote the local assembly of these components. A separate category for parts and components of electric vehicle has been made.
In the Union Budget 2019, custom duty exemptions have further been removed off battery packs for electric vehicles. The said regulations have come into effect from 30th January 2019. The import of battery packs will henceforth attract 5% tax.
Also Read: Bajaj to launch an electric bike in India by 2019
However, the import duty for fully electric vehicle remains the same. This will further promote the ‘Make in India’ initiative. Fully built Electric cars will attract 60/100 % duty and 50% for electric two-wheelers.
Recently, another proposal came up, which suggested applying green cess on petrol-powered scooters and bikes on the basic price. This will further promote the buying of electric two-wheelers in India.
Delhi Government is also working towards the concept of electric vehicles. It is planning to expand the EV infrastructure in India and also plans to make EVs free of registration and road tax charges.
Also Read: TVS working towards the development of hybrid two-wheelers- Report
With these initiatives, the electric vehicle manufacturers can now price their vehicles affordably at a competitive price. Usually most of the electric vehicles are priced at a premium over the conventionally powered vehicles.
Meanwhile, the electric vehicle concept is already developing in India. 2019 will see around 6-7 new electric scooters and bikes and some electric cars as well.
Four-wheeler manufacturers like Mahindra, Hyundai and Maruti Suzuki are planning to bring their EVs in India. Upcoming electric two-wheeler manufacturers include Bajaj, TVS and many other electric startups.
Also Read: Nissan Leaf Electric Car India launch Likely By End Of 2019- Report
Stay tuned as we post more updates of the Union Budget 2019 related to the Automotive sector.
