Indian Budget 2024 what’s for Automobile – Highlights: FAME III, EV policies, reactions and more
Union Budget 2024-25 on Automobile Industry Highlights: The 74th Annual Budget is expected to introduce the new FAME III policy, increase the subsidies for EV buyers, encourage companies to set up battery manufacturing plants in India and R&D in battery technology and much more.
India’s Budget 2024-25 on Automobile Industry Highlights: Finance Minister Nirmala Sitharaman took guard on Tuesday, July 23 for the seventh time in a row to present the Union Budget. It was the first budget for Modi 3.0 and National Democratic Alliance (NDA) after winning the 2024 Lok Sabha elections.
With the Indian Government’s ambitious EV adoption target to make 30 per cent of the total sales of vehicles EVs by 2030, the new Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME III) could increase the subsidies for EV buyers, encourage companies to set up battery manufacturing plants in India and research and development in battery technology, increase EV commercial vehicles and a comprehensive Battery Swapping policy. This will also be on the lines to strengthen the government’s Make in India initiative.
There could be a restructuring in the Goods and Services Tax (GST) keeping hybrid vehicles in mind which are taxed at 43% just below 48% tax on internal combustion engine automobiles (petrol and diesel) and changes in policy for alternative fuels like biofuels and CNG. The budget is also expected to introduce new subsidies on Vehicle Scrapping Policy.
