Budget 2023: EVs to get cheaper, Centre proposes customs duty exemption on batteries

The Central government said that to further provide impetus to green mobility, customs duty exemption is being extended to the import of capital goods and machinery required for manufacture of lithium-ion cells for batteries used in electric vehicles — a move hailed by the EV industry players.

Finance Minister Nirmala Sitharaman in her Union Budget 2023-24 speech said that the subsidies on EV batteries will be extended for one more year, hence making EVs cheaper in the country.

In May 2021, the government unveiled the Production-Linked Incentive (PLI) scheme for manufacturing batteries.