The Union Budget 2025 is all the buzz in the country right now as we take a look at what the EV industry gets
In an attempt to make EVs cheaper, the Union Budget 2025 has some concrete measures on offer. Note that electric cars are gaining massive popularity in our market lately. In accordance with the trend, carmakers are coming up with new models of electric cars frequently. In fact, there are long-term plans to go carbon neutral in the coming years. However, the high prices of these electric cars are preventing mass adoption. Let us check out what the government has decided to do about it from the budget aspect.
Union Budget 2025 To Make EVs Cheaper?
As per Finance Minister Nirmala Sitharaman, the Union Budget 2025 now includes 35 new components needed for EV battery manufacturing to the list of exempted capital goods. Interestingly, for mobile phone battery manufacturing, 28 new capital goods are now exempted. The aim is to boost the domestic manufacturing of lithium-ion batteries for EVs and mobile phones. This could lead directly to reduced prices of EVs and phones. On top of that, this can also aid the manufacturers which will boost the economy in the long run.
Furthermore, the government has also reduced the Basic Custom Duties (BCD) on essential materials needed to make EV batteries like cobalt, lithium battery scrap, zinc, lead and 12 other critical materials. These components are also essential to solar energy equipment, li-ion batteries, and semiconductors. All these factors lead to the fact that electric two-wheelers and four-wheelers could get slightly more accessible for the masses going forward.
My View
I believe this is a great step to boost the mass adoption of EVs in the country. In addition to the charging infrastructure, the high initial cost is the biggest hurdle which is preventing customers from jumping onto the EV bandwagon confidently. However, with such friendly policies, battery manufacturing is bound to get more widespread in India which will even reduce the need for imports to some extent. Let us see how this translates to EV prices.
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Also Read: Will Cars Get Cheaper in Budget 2025?
