Budget 2023 highlights for Automotive Industry

The budget for 2023 to 2024 has arrived. The budget was introduced with the exact words "first Budget of Amrit Kaal" by Finance Minister Nirmala Sitharaman.

Since this year's budget will be the final one before the elections in 2024, it is, to put it mildly, a significant one. The Budget is generating a lot of interest just because of this issue.

Despite the pandemic's difficulties and setbacks, India's automotive industry recovered and has subsequently shown solid growth. The following are the budget's top points for the automobile sector for 2023:

EVs Price Reduction

According to the Finance Minister, imports of equipment and supplies used to make lithium-ion battery packs into India will not be subject to customs taxes. A lithium-ion battery is an all-electric car's most essential component, as we all know.

Given that the majority of all-electric vehicles employ parts from countries other than India, this is a significant step toward making them affordable.

This will only apply to EVs made in India, though. Expect cheaper two-wheelers and budget all-electric vehicles in India in the future.

More funds for vehicle scrapping policy

The central government will allocate more money for the policy on vehicle scrapping. The finance minister also said that pronouncements about the scrappage strategy at the state level would come later.

The central government will increase funding for the Vehicle Scrappage Policy, which was initially planned in the 2021–22 budget.

In addition, states will receive all the assistance necessary to help them destroy obsolete cars and ambulances.

National Green Hydrogen Fuel Mission

The Union Budget has set aside a sizable amount of money to help us all reach net zero emissions. As part of that, the Finance Minister approved an allocation of Rs 19,700 crore for the National Green Hydrogen Mission to manufacture green hydrogen.

By 2023, the government hopes to have 5 million metric tonnes of hydrogen available for manufacturing.This will revive hydrogen-powered transportation in India, which is now losing ground to EVs both domestically and abroad.