Union Budget 2025: Here’s How Buying Electric Vehicle Will Become Affordable

The first full budget under the Modi Government 3.0 has made electric vehicle (EV) buying more affordable. Finance Minister Nirmala Sitharaman fully exempts Basic Customs Duty (BCD) on essential materials like lithium-ion battery scrap, cobalt, lead, zinc, and 12 other critical minerals essential for manufacturing electric vehicle batteries. This move is a significant step towards making electric vehicles more affordable and aligns with the government’s goal of achieving 30% of automobile sales as EVs by 2030.

Sitharaman has also announced reduction on import duties of essential battery production equipment. This will help lower EV battery costs, ultimately making electric vehicles more affordable. This decrease in operational expenses will stimulate the expansion of India’s EV battery industry and enhance domestic production capabilities.

The strategic move towards self-reliance will reduce dependence on foreign supply chains. By nurturing a thriving local battery ecosystem, the initiative advances India’s renewable energy goals and thereby strengthens energy security through homegrown innovation.