CarWale
    AD

    Budget 2020: Impact on the auto industry

    Authors Image

    Nikhil Puthran

    40,583 Views
    Budget 2020: Impact on the auto industry

    - GST for ICE-powered vehicles continues to be 28 per cent 

    - Electric CBU and CKD vehicles to cost more  

    - Localisation a priority and the government to provide ‘handholding support’ 

    The Budget 2020 has limited benefits for the Indian automotive. Most expectations of the automotive manufacturers and related companies remained unmet. The automobile industry had been looking forward to reduction in GST in order to compensate for the hike in prices during the BS6 transition, while lithium-ion battery manufacturers expected a five per cent reduction in custom duty. However, the Indian government has announced ‘handholding support’ for the Indian automotive component industry for technology upgradations, research and development and business strategy planning.  

    The Budget 2020 focuses more on localisation. Effective from 1 April 2020, custom duty on completely built units (CBUs) of commercial EVs will be increased to 40 per cent as against the current custom duty of 25 per cent. As for passenger EVs, the finance minister has proposed to surge customs duty on semi knocked down (SKD) to 30 per cent as against the currently applicable 25 per cent. Additionally, the government has also proposed hiking the duty on SKD forms of electric buses, two-wheelers and trucks to 25 per cent as against the current custom duty of 15 per cent.

      The government has however introduced a new scheme to promote electronics, semi-conductor manufacturing and assembly to attract foreign investment in the country. It is believed that the initiative will help with EV manufacturing in the country. As revealed by the finance minister, a scheme of Rs 1,000 crore will be anchored in the Exim bank together with SIDBI and both these institutions will contribute Rs 50 crore each and it will be achieved towards equity and technical assistance. Additionally, debt-funding of Rs 900 crore from banks would also be made available.   

    Popular News

    Recent News

    Featured Cars

    • Popular
    • JUST LAUNCHED
    • Upcoming
    Maruti Suzuki Dzire
    Maruti Dzire
    Rs. 6.79 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    JUST LAUNCHED
    11th NOV
    Skoda Kylaq
    Skoda Kylaq
    Rs. 7.89 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    JUST LAUNCHED
    6th NOV
    Tata Curvv
    Tata Curvv
    Rs. 9.99 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    Mahindra XUV 3XO
    Mahindra XUV 3XO
    Rs. 7.79 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    Mahindra Thar Roxx
    Mahindra Thar Roxx
    Rs. 12.99 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    Hyundai Creta
    Hyundai Creta
    Rs. 11.00 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    Tata Nexon
    Tata Nexon
    Rs. 8.00 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    BMW M5
    BMW M5
    Rs. 1.99 Croreonwards
    Avg. Ex-Showroom price
    Show price in my city
    JUST LAUNCHED
    21st NOV
    BMW M5
    BMW M5
    Rs. 1.99 Croreonwards
    Avg. Ex-Showroom price
    Show price in my city
    JUST LAUNCHED
    21st NOV
    Mercedes-Benz AMG C 63 S E Performance
    Mercedes-Benz AMG C 63 S E Performance
    Rs. 1.95 Croreonwards
    Avg. Ex-Showroom price
    Show price in my city
    JUST LAUNCHED
    12th NOV
    Maruti Suzuki Dzire
    Maruti Dzire
    Rs. 6.79 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    JUST LAUNCHED
    11th NOV
    Skoda Kylaq
    Skoda Kylaq
    Rs. 7.89 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    JUST LAUNCHED
    6th NOV
    Mercedes-Benz AMG G-Class
    Mercedes-Benz AMG G-Class
    Rs. 3.60 Croreonwards
    Avg. Ex-Showroom price
    Show price in my city
    Mercedes-Benz E-Class
    Mercedes-Benz E-Class
    Rs. 78.50 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    Volvo EX40
    Volvo EX40
    Rs. 56.10 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    BYD eMax 7
    BYD eMax 7
    Rs. 26.90 Lakhonwards
    Avg. Ex-Showroom price
    Show price in my city
    Audi Q7 facelift
    LAUNCHING SOON
    Nov 2024
    Audi Q7 facelift

    Rs. 89.00 - 98.00 LakhEstimated Price

    28th Nov 2024Expected Launch

    Get Launch Alert on WhatsApp

    Mahindra XEV 9e
    Mahindra XEV 9e

    Rs. 50.00 - 52.00 LakhEstimated Price

    26th Nov 2024Expected Launch

    Get Launch Alert on WhatsApp

    Mahindra BE 6e
    Mahindra BE 6e

    Rs. 17.00 - 21.00 LakhEstimated Price

    26th Nov 2024Unveil Date

    Get Launch Alert on WhatsApp

    Honda Amaze 2024
    LAUNCHING SOON
    Dec 2024
    Honda Amaze 2024

    Rs. 7.50 - 10.00 LakhEstimated Price

    4th Dec 2024Expected Launch

    Get Launch Alert on WhatsApp

    Toyota Camry 2024
    Toyota Camry 2024

    Rs. 45.00 - 55.00 LakhEstimated Price

    11th Dec 2024Expected Launch

    Get Launch Alert on WhatsApp

    BMW New X3
    BMW New X3

    Rs. 65.00 - 70.00 LakhEstimated Price

    Jan 2025 (Tentative)Expected Launch

    Get Launch Alert on WhatsApp

    Hyundai Creta EV
    Hyundai Creta EV

    Rs. 22.00 - 26.00 LakhEstimated Price

    Jan 2025 (Tentative)Expected Launch

    Get Launch Alert on WhatsApp

    Tata Punch facelift
    Tata Punch facelift

    Rs. 6.00 - 11.00 LakhEstimated Price

    Feb 2025 (Tentative)Expected Launch

    Get Launch Alert on WhatsApp

    Popular Videos

    Mail Image
    Sign up for our Newsletter
    Get all the latest updates from CarWale
    • Home
    • News
    • Budget 2020: Impact on the auto industry