India’s Automobile Industry, a key driver of the nation’s economic engine, is setting its sights on Budget 2024 with high expectations. Amidst global volatility and geopolitical risks, the industry leaders are calling for continued policy stability and infrastructural advancements, which have been instrumental in navigating the Indian economy through major headwinds and boosting the automotive sector.
In recent years, initiatives such as reduced GST on electric vehicles (EVs) and chargers, as well as favorable road tax considerations, have significantly narrowed the price gap between EVs and fuel-based vehicles. Industry experts now advocate for further reductions in both input and output Goods and Service Tax (GST) for EVs and their spare parts, aiming to bolster this growing segment.
Swapnesh R Maru from Toyota Kirloskar Motor highlights the importance of sustained growth in manufacturing for enhancing India’s global competitiveness. He commends the government’s focus on schemes like Production Linked Incentive (PLI) and infrastructure development, which have attracted substantial investment inflows and given a boost to the automotive sector.
Santosh Iyer of Mercedes-Benz India echoes the need for continued capital expenditure on infrastructural projects. The luxury car segment, he notes, contributes significantly to India’s GDP and seeks a rationalized duty structure and GST.
Raghupati Singhania of JK Tyre & Industries emphasizes consistent automotive policies and a focus on last-mile connectivity and infrastructure for sectoral expansion. He expresses optimism about the upcoming Interim Budget’s potential to drive economic growth and progressive policy measures.
Niraj Rajmohan from Ultraviolette stresses the importance of added benefits for ‘Make in India’ initiatives, particularly in the context of EV exports. He points out the emerging shift in India’s vehicle export dynamics and the potential to tap into first-world markets, awaiting favorable policy developments to support this vision.
Last year’s Budget, with its focus on sustainable mobility, played a crucial role in achieving the target of 1 million electric two-wheelers. The industry now anticipates further support for EV infrastructure, including increased financing opportunities and an emphasis on research and development.
Yatin Gupte of Wardwizard Innovations & Mobility calls for substantial investments in the EV ecosystem, underlining the need for incentives aimed at Indian OEMs to advance local EV technology. This aligns with the Government’s ‘Atmanirbhar Bharat’ (Self-Reliant India) mission. Rajmohan adds to this by advocating for an extension of the FAME subsidy and removal of price caps on EVs to strengthen the industry’s position.
The industry also underscores the importance of continued investment in education and skilling sectors, vital for harnessing the country’s demographic dividend. Maru suggests implementing high-tech skilling programs that transcend geographical barriers to address the skill gap and produce globally competitive products and services.
With a confident outlook, the industry leaders expect the Government to maintain its trajectory towards a greener, less fossil fuel-dependent future. This includes policy support for various technologies that leverage natural and indigenous energy sources, such as solar and wind energy, biofuels like ethanol, and biogas, marking a significant step towards sustainable development in the automotive sector.
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