Budget 2020: A boost for Made in India BS VI Engines and electric vehicles

The automobile industry has been taking steps to reduce air pollution through measures such as the introduction of higher BS VI fuel emission norms from April 1, 2020, and adoption of electric vehicles.

In this context, the Budget has encouraged ‘Make in India’ for critical components in BS VI engines by hiking the customs duty on these parts. Thus, basic customs duty (BCD) for catalytic converters, which are used in BS VI engines, is now 15 per cent against 10 per cent earlier.

BCD for components used in the manufacture of catalytic converters such as certain ceramic parts and metal parts/ solutions/ compounds has been raised to up to 10 per cent from 5 per cent.