Introduction: Planning to buy an electric car under ₹10 lakh? The Government of India has extended the customs duty exemption on lithium-ion battery manufacturing machinery until 2029, a move that could help keep EV prices stable for years.
Buying an electric car could become a smarter financial decision over the next few years. The Government of India has extended the customs duty exemption on machinery used for manufacturing lithium-ion batteries until 2029. This policy aims to strengthen domestic battery production, reduce manufacturing costs and support the country’s fast-growing electric vehicle industry.
For buyers, the biggest takeaway is simple. If battery production costs remain under control, automakers will have more flexibility to maintain competitive pricing instead of passing rising manufacturing expenses on to customers. As a result, affordable electric cars are expected to remain within reach for a larger section of Indian buyers.
Government Extends Battery Duty Relief Until 2029
The latest policy extension provides long-term confidence to manufacturers investing in battery production facilities in India. By continuing customs duty exemptions on lithium-ion battery manufacturing equipment, the government wants to encourage local manufacturing while reducing dependence on imported battery components.
Moreover, this decision aligns with India’s broader goal of becoming a global electric mobility hub. Lower production costs can improve supply chains, encourage localisation and strengthen the domestic EV ecosystem over the coming years.
What This Means for Electric Car Buyers
Electric vehicle prices are heavily influenced by battery costs, which account for a significant portion of an EV’s overall manufacturing expense. If battery production remains economical, manufacturers may be able to avoid frequent price increases on entry-level electric cars.
For customers planning to buy an electric car below ₹10 lakh, this development offers additional confidence. Instead of worrying about sharp price hikes, buyers may continue to find affordable options in the market while also benefiting from lower running costs compared to petrol-powered vehicles.
Tata Motors and MG Motor Could Benefit the Most
Among the biggest beneficiaries of the government’s decision are manufacturers such as Tata Motors and MG Motor India. Both brands have built a strong presence in India’s affordable EV segment and continue to attract first-time electric car buyers.
The Tata Tiago.ev and MG Comet EV are currently among the country’s most popular budget electric cars. Stable battery production costs could help these models remain competitively priced, making electric mobility more accessible across metropolitan cities as well as smaller towns.
Affordable Electric Cars Under ₹10 Lakh
| Model | Starting Price (Ex-Showroom) | Estimated Running Cost |
|---|---|---|
| MG Comet EV | ₹6.99 Lakh | Approx. ₹0.70/km |
| Tata Tiago.ev | ₹7.99 Lakh | Approx. ₹1.10/km |
| Tata Punch.ev | ₹9.99 Lakh | Approx. ₹1.20/km |
Lower Battery Costs Can Improve Total Ownership Experience
Most buyers no longer evaluate a vehicle based only on its purchase price. Instead, they consider the total cost of ownership, including fuel expenses, servicing and maintenance. Electric vehicles already offer lower running costs than petrol and CNG cars in many cities.
With battery manufacturing becoming more economical, EV ownership could become even more attractive over the coming years. Therefore, budget-conscious buyers may find electric cars to be a more practical long-term investment.
Monsoon Offers May Add More Value
Industry experts believe customers should also keep an eye on seasonal dealership offers. Although this government policy may not result in an immediate price reduction, manufacturers and dealers may continue offering attractive exchange bonuses, finance schemes and festive discounts during the coming months. Before booking a vehicle, buyers should compare dealer inventory, waiting periods and available offers to maximise savings.