June 15, 2024

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EV Makers Looking For Lower Customs Duty On EV Components

Ev Makers Lower Customs on Components

Electric Vehicles industry is looking for the customs duty rationalization on various electric vehicles elements such as on batteries, cells, motor, controlling units and other components that are used in the Electric Vehicles which is imported by OEMs. Ev Makers Lower Customs Duty On EV Components

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EV Makers Paying More GST On EV Components

The EV makers are paying more GST on the components and selling the vehicles at lower cost, lesser then what they are paying GST for the products which will be installed in the EVs. The EV makers pay 18% GST for the batteries and for other components they pay 12%. Whereas the electric vehicles get sold at 12% GST. The huge amount of GST is affecting the makers especially to the startups and small organizations.

Ev Makers Looking Lower Customs Duty On EV Components

Co-Founder and Chairman of EV solutions company Sun Mobility said that The GST on batteries is 18% but GST on vehicles is 12%, lower than the GST rate. A regular car GST is 28% while the components are only at 18%. The Government changed the output GST but didn’t change the input GST. India with the huge two-wheeler market, the battery pack cost is 40% of the vehicle price.

Dhivik Ashok On Lower Customs Duty On EV Components

Dhivik Ashok, CEO Go GreenEOT said: “It’s a big cash issue particularly for pure-play electric players many of which are startups including us.” “All OEMs in India import their batteries, cells, motor, controlling units and a few other minor components. If the duty structure on these vehicles ( at a component level) becomes more clearly pronounced then it will surely see a hockey stick curve growth.”

Ev Makers Lower Customs Duty On EV Components

EV industry is also looking at some reforms in the environment. SMEV ( Society of Manufactures of Electric Vehicles) suggests a green cess on all the fuel based vehicles to make EVs a corpus for making the smart city project said Sohinder Gill, Director General of SMEV.

Government TO Invest Rs 350 Crore For Battery And  Its Components

Government is providing Rs 350 Crore to invest in research and innovate the development of battery and its components, motor, rare-earth magnet materials, and electric control system.


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