Please Tell Us Your City

Knowing your city will help us provide relevant content to you.

Sorry! No matching results found. Try again.Error Identifying Your Location.

Budget 2019 reiterates EV push, tax sops to help Auto sector

February 01, 2019, 02:29 PM IST by Omkar Thakur
Budget 2019 reiterates EV push, tax sops to help Auto sector

The NDA government has announced a rather balanced interim budget for the financial year 2019-2020, optimising fiscal restraint and populist announcements. The automotive sector was expecting to find a mention for hybrids along with EVs in the roadmap but to no avail. 

The Indian government is consistent on its EV push in its endeavour to move away from fossil fuels as quickly as possible to reduce India’s dependence on crude. The government has announced tax rebates on the import of EV technology including battery and motors ranging from 10 per cent to 25 per cent, with a special push for local battery manufacturing to counter China’s hold on the global battery manufacturing monopoly. Overall, the 2019 Budget has reiterated its goal of passenger vehicle electrification by 2030.

For the automotive sector as a whole, the alleviation of exempted income to Rs 5 lakhs per annum, will result in the creation of more disposable income in the middle class. Higher disposable incomes will certainly result in higher consumption which, in turn, will drive automotive sales. Also, the governments push for the expansion of the road network in rural sectors will also help push automotive sales.

The automotive industry was expecting more tax sops on import duties, especially with luxury cars facing nearly 70 per cent taxation. Also, the continual tweaking of tax slabs and rates over the past three years has also led to a lot of uncertainty and the industry expects that whatever tax structure gets finalised by the new government, it should stay consistent for at least two to three years.

  • Budget 2019
  • Budget 2019 cars
  • 2019 budget for automobile sector
  • FaceBook Logo
  • Twitter Logo
  • Email Logo
Show CommentsHide Comments
  • Upcoming Cars

Audi New A6Audi New A6

24th Oct 2019

50L - ₹ 60L
Tata Tiago EVTata Tiago EV

Nov 2019

5L - ₹ 7L
Hyundai Tucson FaceliftHyundai Tucson Facelift

Nov 2019

18L - ₹ 20L
Tata Tigor FaceliftTata Tigor Facelift

Nov 2019

6L - ₹ 7L
Audi Q2Audi Q2

Nov 2019

28L - ₹ 32L
All Upcoming Cars
Ask the experts1800 2090 230Mon-Fri (9 AM - 8 PM)
Sat (9 AM - 5:30 PM)
Sun (9 AM - 7 PM)
Toll free


  • 00DAYS
  • 00HRS
  • 00MINS
  • 00SEC

Days To Go!

Official Tyre Partner:

Know More

Select your city to avail offers

Currently available only in