Quick Summary
As Union Budget 2025 approaches, the electric vehicle (EV) industry has high hopes for policy changes to accelerate India's EV adoption and manufacturing capabilities. Scheduled to be presented by Finance Minister Nirmala Sitharaman on February 1, the budget is expected to address long-standing concerns, including GST simplification and the inverted GST structure. Uniform GST for EV Components Industry leaders are advocating for a uniform 5% GST rate across all EV-related items, including co
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FAQ :
The EV industry is advocating for a uniform 5% GST rate across all electric vehicle-related items, including components and charging infrastructure.
The inverted GST structure means raw materials are taxed at higher rates than finished EVs. This creates significant working capital challenges for manufacturers.
Stakeholders are urging the government to introduce performance-linked incentive (PLI) schemes, particularly for EV battery production and indigenous component manufacturing.
The industry is seeking initiatives such as reduced interest rates on EV loans and targeted subsidies to make EVs more accessible and affordable.
India aims to achieve a 30% market share for electric vehicles by the year 2030.
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