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Govt Notifies Phased Import Duty Hike on Electric Passenger Vehicle Parts, Lithium-ion Cells


The government has notified a phased increase in fundamental customs responsibility on electric passenger automobiles’ elements to be assembled in India to fifteen in keeping with cent from April 2020 and 10 percent on imported lithium-ion cells by April 2021 to promote domestic manufacturing of EVs. The notification is part of the street map below the phased manufacturing program (PMP). Also, it involves doubling the basic customs obligation on completely constructed units of electric buses and trucks to 50 per cent from April 2020.

Currently, the primary import responsibility on absolutely knock-down kits utilized in electric buses, passenger EVs, electric-wheelers, three-wheelers, and electric-powered trucks is 10 in step with cent, with a purpose to be raised to 15 consistent with cent from April 2020. Basic customs obligation on elements utilized in manufacturing electric automobiles (EVs) like AC or DC charger, motor, and motor controller; power manage unit, among others, can also be improved to fifteen in line with cent from nil at the present beginning from April 2021, because the Centre eyes to sell mass adoption of EVs thru schemes like FAME II to be rolled out from April.

Vehicle Parts


The fundamental import obligation on battery packs in electric-powered cars will also be improved to fifteen percent from the contemporary five percent in April 2021. The simple import duty on lithium-ion cells used inside the manufacturing of lithium-ion accumulators for EVs may be doubled to 10 percent from April 2021. The phased production program is part of a road map wherein thru graded duty structure indigenous manufacturing of electric vehicles, its assemblies, and components or inputs of the sub-assemblies will be promoted over time. The purpose is to considerably boom value addition and potential building in us of a.

“The PMP shall permit the producers inside the area to plot their investments for the status quo of sturdy indigenous electric powered automobiles and associated sub-meeting/ additives production base in India,” the heavy industries ministry stated within the notification. The Union Cabinet’s final week accredited putting in ‘National Mission on Transformative Mobility and Battery Storage’ to drive smooth, connected, shared, and sustainable mobility tasks.

It entails creating a PMP valid for five years till 2024 to aid in setting up a few massive-scale, export-competitive included batteries and mobile manufacturing Giga flora in India. The government has been pushing for the popularisation of electric and hybrid cars within us. It has already notified the Rs 10,000-crore FAME II scheme to be carried out from April 1 for three years.