2023 Budget Recap For Auto Sector (Cars, EVs) | V3Cars
With the 2023 budget revealed, here’s everything you need to know as a car buyer or car owner. Here’s a quick recap of all the key announcements the finance minister, Nirmala Sitharaman, made during the 2023 budget regarding the auto sector. It covers topics like:
- Bio gas (Bio CNG)
- Flex fuel (Ethanol blend)
- Green hydrogen production
- EV Battery production
- Vehicle scrappage and replacement
Green Hydrogen Production
To accelerate production of green hydrogen, the government will spend Rs. 19,700 crore. By 2030, the government hopes to achieve 100 500 crore kg of green hydrogen production in India with this financial help. This is part of the total Rs. 35,000 crore allocated towards clean energy transition from the ministry of petroleum and natural gas.
Update (Feb 2): Typo error in the above details fixed.
Also Read: Pros And Cons Of Hydrogen Fuel Cell Vehicles
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Blended Biogas (Bio CNG)
To avoid the cascading effect of taxes, the finance minister proposed to exempt excise duty on already taxed blended bio CNG. As the blend of biogas in CNG increases, it will gradually transition the CNG out of the older tax structure and move it under the GST.
Also Read: Suzuki Sign MoU With NDDB, Banas Dairy To Explore Bio CNG As Fuel
Flex Fuel (Ethanol Blend)
The finance minister proposed to exempt the custom duty on the ethyl alcohol, which is used in the chemical and petro-chemical business. This will help cut the prices of ethanol in flex fuel blend and support faster adoption of flex fuel.
Also Read: Pros And Cons Of Flex Fuel Vehicles (Ethanol Blend)
EV Battery Production
To encourage green mobility, the finance minister extended customs duty exemption to capital goods and machinery imports required for lithium battery production.
The minister also announced the intention to assist with 400MWh of battery storage systems.
Also Read: Pros And Cons Of Electric Vehicles
Vehicle Replacement and Scrappage
In continuation with the vehicle scrapping policy proposed earlier, the finance minister announced the replacement policy. Under this policy, the central and state governments will replace old and ageing vehicles with new ones that comply with the latest emission norms and pollute far less. The scrapping policy will help with recycling the materials of the older vehicles
Also Read: Maruti Suzuki Toyotsu - India’s First Govt-Approved Vehicle Scrapping Facility
Note: Check your car’s fuel cost with Fuel Cost Calculator in India
ABOUT THE AUTHOR
Mahesh Yadav
Mahesh is a fan of compact, quirky and underrated vehicles that punch above their weight. Multix, Nano and Navi are his favorites.
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