It is no secret that India has positioned itself as a growing market for electric vehicles as many companies are now flooring EVs. Thus, the industry had high expectations from the budget 2022 impact on electric vehicles.

The Finance Minister announced favourable measures to promote electric vehicles as a preferred mode of transportation in the country. Let’s take a look at the various budget 2022 highlights for electric vehiclesbelow.

Battery swapping policy

One of the key announcements in the budget 2022 was the battery swapping policy. Simply put, a battery swapping station will allow the EV user to replace an exhausted battery with a charged one within minutes.

Further, the government also aims to encourage private players to contribute to the process of setting up these stations. This will promote domestic manufacturing and will also help manufacturers reduce the cost through large-scale production.

Rural vehicle demand

The union government has also announced an MSP payment of Rs. 2.73 lakh crore, along with several other benefits. This would increase the demand for electric vehicles as well as cars, SUVs, and other commercial vehicles in the rural sector.

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Reduction in custom duty

If you’re planning to buy an electric vehicle with a personal loan, there might be a relief for you. The government has proposed to reduce the customs duty on various key components that are used to make batteries used in EVs.

The reduction in customs duty will help domestic manufacturers in decreasing their production costs. In addition, the decrease in customs duty on motor parts from 10% to 7.5% will further help cut down the overall cost of EVs. Naturally, this means low-cost electric vehicles and even more affordable personal loan interest ratesfor you.

Encouraging EVs in public transport

The finance minister also has plans to include electric vehicles in the public transport system. Additionally, the government will introduce special mobility zones for EVs and the use of clean technology. This will help the EV industry in terms of sales and manufacturing, especially the auto companies that produce commercial vehicles and electric buses.

Infrastructural boost

The budget 2022 highlights on electric vehicles included an allocation of Rs. 20,000 crores as a part of PM’s Gati Shakti Plan for Expressways. This move aims to expand the national highways network in India by 25,000 km and encourage demand for commercial vehicles in the country. Moreover, expert opinion suggests that it will increase the demand for EVs in the country and promote the growth of subsidiaries supporting the EV industry.

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Final Thoughts

Overall, there are a lot of constructive measures for the promotion of the EV sector in the country. Make the most of these provisions and finance your EV purchase with Tata Capital!

At Tata Capital, we provide a simple application process, easy-to-meet personal loan eligibility, and quick loan disbursal. Enjoy attractive interest rates and take home your dream vehicle!

Use our personal loan EMI calculator to plan your EMI payments today! Visit us to know more.

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