The Union Budget 2019 brings good news for electric vehicle buyers in India and India to be the next hub for the manufacturing electric vehicle batteries.
With the concept of completely turning eco-friendly, there is an introduction of Electric vehicles in India. Where in brands like Hyundai, Audi, Morris Garages, Tata Motors, Maruti, Mahindra have already presented their prototypes for the electric vehicles which will be soon launched. The recent Union Budget 2019 has introduced various reductions and increments in Excise duty on Electric vehicles in India. So, if you are looking for buying the Electric vehicles, what should one keep in mind and know about the effects of Union Budget on electric vehicles.
GST Reduction
The government has reduced the GST to 7%. So, for instance if you were going to buy a car which have a factory cost of Rs-10 lakh so we have to pay 12% GST on it and then the showroom price will be Rs-11.20 lakh. Now GST on electric cars is 5% so if we are going to buy a car which has the factory cost of Rs-10 lakh. So, we will have to pay 5% GST on it and the price will be Rs-10.50 lakh.
As stated, the electric cars are more expensive in India, which is the main reason for less public interest. For instance, the regular Tata Tigor is priced at Rs-5,49,990 in India where the Tata Tigor EV is priced at Rs-9.99 lakhs which is almost 65.5% more then it. If EVs reduced their price segment, then more people could be interested in buying EVs.
India is going to be EVs Manufacturing Hub soon
Electric vehicles are so much expensive due to their battery and other spare parts which are imported from other countries. In the recent initiative the Indian government has decided to invite various brand to India and start-up various plants, which will produce lithium batteries and other parts here in India. Which gradually can help in the reduction of prices of the electric vehicles.
In addition, there is also an increased in the excise duty of fully imported cars in India which is up-to 5%. For ex: If you are willing to buy an imported car which is priced at Rs-1 Cr., so you also have to pay 5% excise duty so the cost will be 1,05,00,000 in India.
