Union Budget 2024: EVs to Become Affordable With Lowered Custom Duty on Mineral Imports

The Finance Minister stated that the Indian mobile industry has matured and proposed to reduce the Basic Customs Duty (BCD) on mobile phones, mobile Printed Circuit Design Assembly (PCDA), and mobile chargers to 15%.

Additionally, the proposed exemption in customs duty on the import of lithium, cobalt, and other rare minerals in the Union Budget 2024-25 is expected to lower battery production costs, making electric vehicles more affordable for buyers, according to auto industry leaders. Presenting the budget, Finance Minister Nirmala Sitharaman proposed fully exempting customs duties on 25 critical minerals and reducing BCD on two of them. She noted that this measure would significantly boost the processing and refining of these minerals and ensure their availability for strategic sectors like nuclear energy, renewable energy, space, defense, telecommunications, and high-tech electronics.

Vinod Aggarwal, President of the auto industry body SIAM, welcomed these measures, stating that the exemption of customs duty on lithium, cobalt, and other rare minerals, the extension of concessional customs duty on Li-Ion cells until March 2026, and the withdrawal of the 2 percent equalisation levy on e-transactions are expected to drive the growth of the Indian auto industry. He also appreciated the continued emphasis on economic growth and the strong fiscal support for infrastructure in the coming years.