Budget 2023 Automobile
Automobile Industry

Budget 2023-24: Major Highlights For The Automobile and Road Transport Industry

The Union Finance Minister Nirmala Sitharaman has announced a host of measures for the automobile industry in the budget for the financial year 2023-24, including relief in customs duty on EV batteries and an emphasis on green energy. Here are some key takeaways – 

– Li-ion cell assembly/manufacturing machinery and goods are crucial for manufacturing EV batteries, so the suspension of import duties was one of the most noteworthy announcements for the industry. This will prompt more local production of Li-ion batteries, consequently, it will significantly contribute in lowering the manufacturing cost of EVs.

Toyota Mirai FCEV

– As part of the government’s push for green mobility, the finance minister announced an allocation of Rs 19,700 crore for the National Hydrogen Mission, with the aim of achieving a production capacity of five million metric tonnes (MMT) by 2030. In India, this would lead to a shift toward hydrogen fuel-powered mobility that would help reduce dependence on fossil fuels.

– There is already a scrappage policy in place, and the government has already announced benefits associated with it. During her speech in the parliament, finance minister Sitharaman announced that the ministry has allocated sufficient funds to scrap old vehicles of the central government. States will also be supported in replacing old vehicles and old ambulances, for reducing vehicular pollution.

Basic customs duties on denatured ethyl alcohol have also been eliminated. This will support the government’s plan for ethanol blending and will reduce our dependency on oil imports. 

– Rs 5,172 crore has been allotted for the FAME II scheme to help accelerate the adoption of electric vehicles in the country through subsidies.

– A total of Rs 2.70 lakh crore has been allocated to the Ministry of Road Transport and Highways (MoRTH).

– A total of 100 critical transportation projects have been identified, including those for ports, steel, coal, fertilizers, and food grains. With an investment of Rs 75,000 crore, including Rs 15,000 crore from private sources, they will be tackled on a priority basis.

Budget 2023-24: Major Highlights For The Automobile and Road Transport Industry
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