EV Revolution Speeds Up : Today, Union Finance Minister, Nirmala Sitharam announced the Union Budget 2025 and here are the major sector updates. At the time of budget announcement itself, the union minister discussed new initiatives to scale up electric vehicle battery production in India. While these changes are well-practiced in cost reduction, which will help manufacturers to scale the booming
demand for this new energy vehicles.In a step that will bolster the making of electric vehicles in the country, the union minister will also add a list of 35 capital goods for the materials that are exempt from Basic Custom Duty (BCD). The exemptions are intended to reduce the cost of manufacturing EV batteries in India. This image is a little clearer, because, in particular, it offers a waiver for essential raw materials such as scrap from lithium-ion batteries, Cobalt powder, waste Cobalt, lead, zinc and 12 other critical minerals.
Proponents say that the initiatives proposed in Budget 2025 will be a boost to local manufacturing, creating more jobs in the industry. These measures are part of an effort to position India as a significant player in the international EV space given the growing domestic demand for electric vehicles.
Auto Industry’s Reaction
Santosh Iyer, MD & CEO, Mercedes-Benz Indiaarni
“India has always being considered as niche garden with high fence… It is expected that through this budget, we will not only enrich the garden by stimulating the consumption and giving strength to MSME sector, but with a clear commitment to greater global trade integration, lower the fences by means of tariff rationalization and liberal adoption of international practices on transfer pricing. This would be a big positive signal to the industry which will strengthen the confidence in the ‘India Growth Story’
enabling investment to continue and prospects to flourish in the future. A positive step for EV ecosystem strengthening: The announcement on the setting up of National Manufacturing Mission’s for clean technology manufacturing; support to domestic EV battery manufacturing. “We also welcome the constitution of high-level committee to review regulatory reforms which will ease of doing business in long run.