Union Budget 2025-26: Two-Wheeler EVs To Become More Affordable

In an effort to boost domestic manufacturing and lessen reliance on imports, the Union Budget 2025–2026 proposes tax redemption for the manufacture of lithium batteries. It is anticipated that this initiative will lower the cost of electronics and EVs in India. It also supports the government’s goal of achieving 30% of EV sales by 2030. Check the full details. 
 

How EVs Become Cheaper?

Tax advantages have been provided by the Finance Minister in the Union Budget 2025-26 to boost local manufacturing. These advantages include complete exemption from Basic Customs Duty (BCD). This exception covers important materials used in production. These consist of scrap and cobalt powder from lithium-ion batteries. Additionally, it includes 12 other important minerals, including zinc and lead.
 

Furthermore, lowering import taxes on necessary equipment for battery manufacturing attempts to reduce the cost of EV batteries. As a result, this would eventually make electric vehicles more accessible. This reduction in operating costs would boost local production capacity and encourage the growth of India's EV battery sector. Lastly, this initiative encourages companies like Ola Electric, Ather, and TVS to expand their operations in India. 
 

Budget 2025-26: Auto Inc. Reactions

CEO of Switch Mobility said, "The announcement of the National Manufacturing Mission, with its dedicated focus on clean tech manufacturing and EV components, will further strengthen the local value chain and lead to more backward integration, especially batteries."
 

Consider TN-based EV manufacturer Raptee, which produces batteries for its own automobiles. Dinesh Arjun, Raptee's CEO and co-founder, stated that "the move will reduce battery costs, which make up 30% to 40% of the price of an electric vehicle."
 

Before you go, check out the 2025 Activa Scooters Line-up. 

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