India expands tax benefits for EV makers, raising threshold and including lithium-ion batteries.

The Indian government has expanded tax benefits for electric vehicle (EV) makers and battery producers by increasing the threshold for safe harbour rules to ₹300 crore from ₹200 crore. Lithium-ion batteries for EVs and hybrids are now included as core auto components, providing tax certainty and reducing disputes over transfer pricing for these businesses. The changes apply to the 2025-26 and 2026-27 assessment years.