Funding for electric vehicle sector up 117% in 2022, at $1.6 billion

The Budget exemption for Customs duty on capital goods and machinery for manufacture of EV batteries, and the duty cut on lithium batteries from 21 per cent to 13 per cent will lower prices

India’s electric vehicles (EV) market is the third-largest in terms of number of companies, next only to the US and China, and the fourth-highest funded market in this space. “Favourable government initiatives like FAME II, a programme to speed up the electrification of public transportation, as well as other elements like growing environmental awareness and rising oil prices, have all contributed to the sector’s expansion,” said Neha Singh, co-founder of Tracxn, a start-up data platform.

The Budget exemption for Customs duty on capital goods and machinery for manufacture of EV batteries, and the duty cut on lithium batteries from 21 per cent to 13 per cent will lower prices and boost investment in the industry.

The total funding in this segment has increased by 117 per cent, from $766mn in 2021 to $1.66bn in 2022.