The electric vehicle (EV) revolution is gaining momentum, and the latest union budget 2023 has further boosted its growth. The government of India is recognizing the need for a cleaner and greener future, and electric vehicles play a crucial role in achieving this goal. With the latest budget announcements, the government is taking steps to incentivize the adoption of electric vehicles and provide the necessary support to make the transition to EVs seamless and affordable for the general public.
Subsidy on Batteries: The union budget 2023 has increased the subsidies for electric vehicles to encourage their adoption. Previously, Electric two-wheelers were eligible for a subsidy of up to Rs 15,000 for every kWh of battery capacity, or 40% of its total cost, whichever is lower.
Tax Reduction: The government has demonstrated a strong commitment to promoting green mobility in the discussion of Budget 2023. One such step is the tax exemptions provided on Lithium-ion batteries and raw materials, which are critical components in the production of electric vehicles.