It is the final weekend before the Finance Minister announces the Budget on February 1. While GST rationalisation and subsidy for the EVs are some of the most common expectation across the auto sector but the incentive for alternate fuel is also another key expectation
Piyush Parag, DVP of Fundamental Research, Sharekhan by BNP Paribas said, “No major direct benefit is expected for Internal combustion segment ( ICs), while the incentives for promotion of clean fuel (CNG, hybrid, hydrogen, EVs, fame policy etc) etc are key thing to watch out in upcoming budget. Broader provisions for investment in infrastructure and allocations on rural schemes etc would be noted down for macro readings.”
Kishor Ostwal, CMD, CNI Research believes that, “Auto being representative of the economy will be top priority for Govt. EVs will get extended benefits.”
Even Arun Agarwal, Vice President, Kotak Securities agreed on the fact that EVs will get additional support, “Given Government’s focus towards clean energy, some measures can be expected to facilitate further electric vehicle (EV) adoption and to support development of EV ecosystem in the country. Apart from this, initiatives to support rural income would also indirectly benefit some segments within the auto industry (mainly entry level two wheeler segment and the tractor segment).”