Home Industry News Cheaper EVs likely on local push – ET Auto

Cheaper EVs likely on local push – ET Auto

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EV penetration across two-wheeler, passenger vehicle, three-wheeler and commercial vehicle segments stood at 6.1%, 2.4%, 56.6% and 0.99% respectively in calendar year 2024.

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EV penetration across two-wheeler, passenger vehicle, three-wheeler and commercial vehicle segments stood at 6.1%, 2.4%, 56.6% and 0.99% respectively in calendar year 2024.

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EV penetration across two-wheeler, passenger vehicle, three-wheeler and commercial vehicle segments stood at 6.1%, 2.4%, 56.6% and 0.99% respectively in calendar year 2024.

Electric vehicles are likely to become more affordable with the government fully exempting basic customs duty on materials required for producing lithium-ion batteries.

Industry stakeholders say the proposed measure announced by finance minister Nirmala Sitharaman in the budget will help lower production costs and bolster development of a local manufacturing ecosystem for zero-emission vehicles. Batteries comprise as much as 40% of the cost of producing an electric vehicle and currently they are imported from China and Taiwan.

Nirmal K Minda, chairman and managing director at auto component maker Uno Minda, said the government’s emphasis on manufacturing of batteries and components for EVs will significantly enhance domestic manufacturing capacities and reduce import dependence. “Efforts to localise key EV components such as batteries, motors, and controllers will also help lower upfront costs, making EVs more accessible to consumers and strengthening India’s EV ecosystem,” Minda said.

EV penetration across two-wheeler, passenger vehicle, three-wheeler and commercial vehicle segments stood at 6.1%, 2.4%, 56.6% and 0.99% respectively in calendar year 2024.

The Clean Tech Mission will drive domestic value addition and build a local ecosystem for EV batteries, motors and controllers. Society of Indian Automobile Manufacturers (Siam) president Shailesh Chandra said the automobile industry will benefit from the National Manufacturing Mission which supports clean tech manufacturing. “Furthermore, the exemption of critical minerals (cobalt, lead, zinc), scraps of lithium-ion batteries, and 35 additional capital goods from customs duty, will help create a strong EV ecosystem in the country,” said Chandra.

Finanace minister Sitharaman Saturday proposed to add to the list of exempted capital goods, 35 additional items for EV battery manufacturing.

Pritesh Mahajan, cofounder & CEO at electric two-wheeler maker Revamp Moto, said the FM’s proposal to fully exempt basic customs duty on cobalt powder, lithium-ion battery waste, scrap, and a dozen other critical minerals is a crucial step in ensuring the availability of key raw materials for domestic manufacturing. “This will not only lower production costs but also incentivise companies to scale up operations, drive technological advancements, and create high-value job opportunities for India’s youth,” said Mahajan.

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Industry stakeholders say the proposed measure announced by finance minister Nirmala Sitharaman in the budget will help lower production costs and bolster development of a local manufacturing ecosystem for zero-emission vehicles. Batteries comprise as much as 40% of the cost of producing an electric vehicle and currently they are imported from China and Taiwan.

Team ET

EV penetration across two-wheeler, passenger vehicle, three-wheeler and commercial vehicle segments stood at 6.1%, 2.4%, 56.6% and 0.99% respectively in calendar year 2024.

“>

EV penetration across two-wheeler, passenger vehicle, three-wheeler and commercial vehicle segments stood at 6.1%, 2.4%, 56.6% and 0.99% respectively in calendar year 2024.

Electric vehicles are likely to become more affordable with the government fully exempting basic customs duty on materials required for producing lithium-ion batteries.

Industry stakeholders say the proposed measure announced by finance minister Nirmala Sitharaman in the budget will help lower production costs and bolster development of a local manufacturing ecosystem for zero-emission vehicles. Batteries comprise as much as 40% of the cost of producing an electric vehicle and currently they are imported from China and Taiwan.

Nirmal K Minda, chairman and managing director at auto component maker Uno Minda, said the government’s emphasis on manufacturing of batteries and components for EVs will significantly enhance domestic manufacturing capacities and reduce import dependence. “Efforts to localise key EV components such as batteries, motors, and controllers will also help lower upfront costs, making EVs more accessible to consumers and strengthening India’s EV ecosystem,” Minda said.EV penetration across two-wheeler, passenger vehicle, three-wheeler and commercial vehicle segments stood at 6.1%, 2.4%, 56.6% and 0.99% respectively in calendar year 2024.The Clean Tech Mission will drive domestic value addition and build a local ecosystem for EV batteries, motors and controllers. Society of Indian Automobile Manufacturers (Siam) president Shailesh Chandra said the automobile industry will benefit from the National Manufacturing Mission which supports clean tech manufacturing. “Furthermore, the exemption of critical minerals (cobalt, lead, zinc), scraps of lithium-ion batteries, and 35 additional capital goods from customs duty, will help create a strong EV ecosystem in the country,” said Chandra.Finanace minister Sitharaman Saturday proposed to add to the list of exempted capital goods, 35 additional items for EV battery manufacturing.Pritesh Mahajan, cofounder & CEO at electric two-wheeler maker Revamp Moto, said the FM’s proposal to fully exempt basic customs duty on cobalt powder, lithium-ion battery waste, scrap, and a dozen other critical minerals is a crucial step in ensuring the availability of key raw materials for domestic manufacturing. “This will not only lower production costs but also incentivise companies to scale up operations, drive technological advancements, and create high-value job opportunities for India’s youth,” said Mahajan.

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