Finance Minister Nirmala Sitharaman presented the seventh budget on July 23, marking the first budget of Prime Minister Narendra Modi's third term. The budget brought significant announcements for the auto industry. Let's delve into the major changes introduced in the Union Budget 2024 for the auto sector.
Nirmala Sitharaman's Budget 2024
While presenting the budget, Nirmala Sitharaman announced a reduction in the cost of lithium-ion batteries, which are used in the manufacturing of electric vehicles. This decrease in lithium-ion battery prices will lead to a decrease in the cost of electric cars. The government is taking steps to increase the demand for electric vehicles in the country. To boost electric vehicle demand, the government introduced a new Electric Vehicle Policy. Under this policy, if a foreign company invests over $500 million and sets up a manufacturing plant within three years, it will be eligible for relief in import taxes.
Union Budget 2024: Major Announcement for Auto Sector
In the Union Budget 2024, significant changes were made to promote electric vehicles. The government aims to reduce the cost of electric vehicles by decreasing the cost of lithium-ion batteries.
Changes in Budget 2023
In the 2023 budget, the government had introduced policies to reduce the cost of electric vehicles. The customs duty on lithium-ion batteries used in electric vehicle manufacturing was reduced from 21% to 13%. Additionally, a 35% customs duty was imposed on semi-knocked-down cars imported from abroad. Completely built units (CBU) of foreign-made cars faced a 70% customs duty.
Key Takeaways:
- Reduction in lithium-ion battery prices to decrease electric vehicle costs - New Electric Vehicle Policy to boost demand - Relief in import taxes for foreign companies investing in manufacturing plants - Customs duty reduction on lithium-ion batteries in Budget 2023 - Increased customs duty on imported luxury and high-end cars in Budget 2023
Jamila Elena Michelle Sentenced to 35 Years to Life for Murder of Hollywood Advisor Michael Latt
Artificial Intelligence Eating Jobs: India's Finance Ministry Expresses Concern