Budget 2025: EVs going to be cheaper in India

Budget-2025 relieves taxpayers with the increase in income tax exemption limit to Rs.12 Lakh.

For salaried individuals, the limit goes further to Rs.12.75 Lakh including the standard deduction

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The budget proposes several key measures to support India’s transition to electric mobility

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It reinforces India’s commitment to achieve zero-emission transportation

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Collective funding for promoting electric mobility increased from Rs.4434.92 crore in 2024-25 to Rs.5322 crore

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Allotment for PM E-DRIVE scheme to support EVs and public charging stations has increased by over 114% to Rs.4000 crore in FY26.

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Allocation for the Scheme to Promote Manufacturing of Electric Passenger Cars in India (SPMEPCI) doubled to Rs.12 crore from 6.16 crore in FY25

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The funding for PM e-Bus Sewa scheme rose from Rs 500 crore in FY25 to Rs 1310 crore

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The budget underscores Government’s aim to achieve the target of 30% EV penetration by 2030

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To support localized battery manufacturing, the budget fully exempted Basic Customs Duty (BCD) on key materials like cobalt powder, scraps of lithium-ion battery, lead, zinc and twelve other critical minerals

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