Import duty on EV components lowered to 10-15%

The government of India has lowered the import duty on components for electric vehicles (EVs) from 15-30% to 10-15% from January 30, 2019. The move is aimed at encouraging local assembly of electric vehicles. 

Completely knocked down (CKD) kits, which include disassembled battery packs, electric motor and braking system among other parts that are not mounted on the chassis will attract 10% duty, while pre-assembled packs will be charged 15% duty. 

The Central Board of Indirect Taxes and Customs (CBIC) has classified EV components into a separate category with lower customs duty. On the other hand, customs duty exemption on battery packs for electric vehicles has been removed. As a result, battery packs for EVs will attract 5% import duty. 

Source: Economic Times