Union Budget 2024 – Recent Updates

The Union Budget 2024 is set to significantly impact India’s electric vehicle (EV) industry, aligning with the Narendra Modi government’s goal for 30% of all cars sold by 2030 to be electric. The budget may allocate around 10 billion rupees to the Faster Adoption and Manufacturing of (Hybrid &) Electric Vehicles (FAME) strategy, with the Ministry of Heavy Industry submitting plans for final decisions. Stakeholders are keen on a clear FAME-III policy outline, although immediate details might be delayed. Incentives such as subsidized capital spending, higher depreciation rates for machinery, and streamlined GST on EVs and parts are expected to boost EV adoption. With EV sales tripling in FY24, challenges remain, particularly in charging infrastructure. Tata Motors anticipates the industry will achieve self-sufficiency with continued government support, including developing domestic battery manufacturing to compete with China. The FAME initiative, launched in 2019, aims to promote electric and hybrid vehicles, reduce costs, enhance local manufacturing, and expand charging infrastructure, contributing to a cleaner environment and sustainable energy future.