- Union Budget 2023 Updates
- Provisions For the Auto Industry
- No mention of the FAME subsidy
Finance minister Mrs. Nirmala Sitharaman has produced the Union Budget for the year 2023. The Auto industry was eyeing some relief for better inclusivity of the common masses along with the manufacturer. And it has some major updates for the Auto Industry as well which directly affects you as a consumer as well. Tax cuts on a few things and increased on others.
So, how would you as a buyer and a current user will be affected? We explain
1. EVs Likely To Get Cheaper: Pivot Towards Greener Mobility
In the Union Budget 2023, the import duty on raw materials required for the production of lithium-ion batteries has been reduced, which will ultimately lead to a cheaper cost of the battery to produce. The EVs in the final ready product have a substantial cost of the battery. This means that the cost of EVs will see some relaxation.
With the Industry witnessing launches after launches like the Mahindra XUV400 Electric, Tata Tiago EV, and the Tata Nexon EV, this will give some sigh of relief to you as a new buyer. The only catch is that the battery must be locally Made in India.
Also, Read- Mahindra XUV400 Clocks 10,000 Bookings In 5 Days, Waiting Period Shoots Up
2. Budget 2023: Luxury Cars To Cost Even More
In a bid to accelerate local manufacturing, imported cars now attract higher import duties. The import duty has been increased to 70% from the current 60% for CBUs (Completely Built Units).
On top of that, the tax on semi-knocked units has been increased from 30% to 35%. This will create obstacles for the luxury car segment. The locally built units will not bear the brunt of this one.
3. More Impetus On Flex Fuel
With a more progressive approach toward sustainable mobility, the government has reduced import duty on denatured ethanol by 5%. On top of that, additional incentives to local producers are also announced. This will help to meet the E20 targets on time. Simultaneously, will also help in keeping the prices in check.
4. Union Budget 2023: Vehicle Scrappage Policy Reinforced
With the new budget of 2023, the vehicle scrappage policy has been given a fresh push. Allocations have been announced to help state governments to scrap old vehicles including that of the government. This will benefit the manufacturers and the environment. For the owners, this won't be a very relieving news.
- Luxury vehicles will cost more
- Flex-fuel incentives for better inclusion
- Scrappage policy reinforced for greener mobility
VERDICT- With the new budget 20223, a lot of new developments have taken place. More push has been given to sustainable mobility. Green Hydrogen Investment, Old Vehicles scrappage, and the cutting down of import duty on denatured ethanol. This will help in meeting our targets of net carbon emissions by 2070. The escalation of taxes on imported vehicles will hinder the luxury car segment and also boost the Make In India initiative.
Also, Read- 2023 Innova Crysta Diesel Facelift Unveiled: Read Everything That's New
