New Delhi, Feb 2 (KNN) Finance Minister Nirmala Sitharaman in the Union Budget announced a range of tax rebates and reduction in custom duties that are likely to make vehicles cheaper and push EV sales in the country.

The Federation of Automobile Dealers Associations of India (FADA) on Wednesday termed the Budget for 2023-24 as populist as it will help boost Auto Sales all around.

Lauding the Budget, Manish Raj Singhania, FADA president said, “With focus on Electrification, relaxation on import duties of Lithium-ion batteries will help in price reduction of EVs, thus make it affordable for the masses.”

The Industry body pointed out that while the capital outlay of Rs 10 Lakh Cr in infra spending will definitely aid CV sales, the aim to scrap all old government vehicles by aiding State Governments will boost all segment sales.”

“Apart from this, the reduction in individual tax slabs will benefit the ailing entry level 2W and PV segment,” he said.

Singhania highlighted that a reduction in highest tax surcharge from 37 per cent to 25 per cent will also benefit luxury vehicle sales.

“On business front, being part of the MSME universe, cost of credit guarantee will reduce by 1 per cent thus helping Auto Dealers in raising funds,” the association president added.

Union Budget 2023-24 has also stressed on ease of doing business by reducing more than 39K compliances and enabling entity level Digi locker for storing and sharing documents.

“With the budget announcement completed, we can see the emphasis on this year's budget on wider adoption of Electric Vehicles for public as well as private use.  The introduction of the National Hydrogen Mission in India is a huge step towards making the country greener and more sustainable,” said Nemin Vora, CEO, Odysse Electric Vehicles (EV sector).

Vora said that another significant announcement made by the government is the elimination of customs duty on capital goods imported for the manufacturing of lithium-ion batteries.

This step is a boost for companies that are or would be manufacturing batteries for electric vehicles locally. Overall, this move by the Government of India is expected to have a positive impact on the lithium-ion battery industry, making it more accessible and cost effective for businesses.  (KNN Bureau)