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EV Budget 2019 - Key highlights of EV Budget 2019

  • Published On: 30 October 2019
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Electric Vehicle Budget 2019 - Future is Electric. Know here Key Highlights of Federal Budget 2019 on Electric Cars. GST on electric cars, Benefits of EV Budget 2019.

Auto Budget 2019 was a big blow to the huge expectations of the entire auto industry. It has stand up to the expectancy of a particular niche who caters to electric vehicles by introducing some positive and motivated steps towards prioritizing the electric vehicles in India.

Earlier, the government of India announced that there will be a budget of Rs 10 K crore for Faster Adoption and Manufacturing of Hybrid and Electric Vehicles under the Phase II of FAME scheme for three years. And addition to this, they have now come up with the EV boost by bringing some significant hits.

In addition to this, Honb. Minister of Road Transport and Highways Shri Nitin Gadkari Ji has confirmed recently that the Government of India is not against the petrol and diesel based industry, but they are encouraging the electric vehicles or any alternate technology that will be much cheaper and also pollution-free; and ask the market to take the decision and make a choice.

The key highlights of EV Budget 2019 were:

  • Reduction of GST

The Government of India has asked the GST Council to cut Goods and Service Tax (GST) on electric vehicles from 12% to 5%.

  • Wave off Custom Duty

For some selected parts of electric vehicles like charging guns, EV e-drive, etc., the Government has decided to wave off the custom duty, till local manufacturing is running and flourishing.

  • Tax Rebates

A buyer of electric vehicles will get up to Rs. 1.5 lakh on interest paid on car loan and a total exemption of Rs. 2.5 lakhs over the entire loan period (Loan taken on or before 31st March 2023).

  • Additional Taxes on Petrol and Diesel

The new budget has levied an additional tax on every liter of petrol and diesel. One rupee as excise duty and one rupee as road and infrastructure cess will be charged on each liter.

Cost Effectiveness of Using Electric Vehicles

Electric vehicles have environmental benefits such as checks air pollution, utilizes renewable energy and uses biodegradable materials, as well as it proves to be cost effective. If you compare a petrol vehicle with an electric vehicle, you will be able to understand that EV is 84% more cost-effective as compared to a petrol vehicle.

Factors

Petrol Scooter

Electric Scooter

Years

5 years

5 years

Kms

40000 Kms

40000 Kms

Consume

800 liters of Petrol @ 50 Kmpl

80 Kms per charge and consume 2 units per Km = Rs. 1000

Cost of per unit

Rs. 80 per liter

Rs. 7 per unit

Cost

Rs. 64,000

Rs. 7000

5 Years Maintenance and Servicing Cost

Rs. 25,000 (approx.)

Rs. 7,500 (approx.)

 

Total Cost of Ownership

Rs. 89,000 + loan interest (if loan is taken)

Rs. 14,500 + loan interest (if loan is taken)

Extra Cost

_

If battery is changed, Rs. 12,000 + Rs. 14,500 + loan interest =

Rs. 26,500

(Change of battery is required after 5-6 years)

 

Factors

Petrol Car

Electric Car

Years

5 years

5 years

Kms

50000 Kms

50000 Kms

Consume

4166 liters of Petrol @ 12 Kmpl

 

100 Kms per charge and consume 10 units per Km = Rs. 5000

 

Cost per unit

Rs. 80 per liter

Rs. 7 per unit

Cost

Rs. 333,333

Rs. 35,000

5 Years Maintenance and Servicing Cost

Rs. 50,000 (approx.)

Rs. 25,000 (approx.)

 

Total Cost of Ownership

Rs. 383,333 + loan interest (if loan is taken)

Rs. 60,000 + loan interest (if loan is taken)

Extra Cost

_

If battery is changed, Rs. 12,000 + Rs. 60,000 + loan interest =

Rs. 72,000

(Change of battery is required after 8 years)

EV is still a mini-scale part of the auto industry and to boost the enthusiasm of the auto players and channelize them towards expanding the electric space, these measures have been taken. Nirmala Sitharaman, our Finance Minister, has boldly announced to “aim to see India as the global hub of manufacturing of electric vehicles”.

Author: Jitendra.arora@droom.in

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