The Economic Survey has already been tabled and all eyes are on the Budget announcements tomorrow by Finance Minister Nirmala Sitharaman tomorrow. Here is a quick look at key expectation that auto industry stake holders have from this Budget-
Raghupati Singhania, Chairman & Managing Director, JK Tyre & Industries expects the Government to implement viable policy reforms and encourage indigenous sectors so as to reduce India’s import dependency, in line with the essence of Aatmanirbhar Bharat.
The industry is also suggesting the Government to rationalize the current tax regime, reduce GST and introduce light-touch regulations across sectors, in the upcoming union budget. The auto industry, especially, is expecting the government to introduce a long-term policy roadmap that will help the industry navigate future uncertainties and embrace technological advancements.”
Chetan Maini, Co-founder and Chairman, SUN Mobility expect that ” To further bolster the same, the EV industry is looking for the following announcements from the government-
1. Reduction in GST on ACC (Advanced Chemistry Cell) batteries for EVs to be at par with EVs (5%), to enable business models such as battery leasing, battery as a service, etc
2. PLI scheme to be extended to MSMEs especially to manufacture / assemble AC battery packs and charging & battery swapping equipment’
Nagesh Basavanhalli, Executive Vice-Chairman, Greaves Cotton expects that the “EV industry will stand to gain further from policies that foster long-term growth in the upcoming Union Budget 2023 – 24. These include a uniform 5 percent GST rate on all components of EV to avoid an inverted duty structure, which blocks funds in working capital for the EV companies.
The benefits of the production-linked incentive scheme must be expanded to suit fuel-agnostic policies as well. It is essential that EV adoption continues to grow with continued subsidy allocation for OEMs, till the market reaches an EV penetration of 8-10%.”
Narain Karthikeyan, India’s first Formula One Driver and Founder & CEO, DriveX looks forward to the Union Budget with high expectations, “Our main focus is to see changes and improvements that will positively impact our business and help us become a major player in the industry.
One of our main priorities is to see the refurbishment industry recognized as a manufacturing sector. We hope to see policies and initiatives that will change this perception and allow us to qualify for schemes like the Production Linked Incentive (PLI) scheme. In addition, we would like to see more favorable credit and financing options available to businesses in our industry.”
Varun Goenka, CEO & Co- Founder, Chargeup added that “The need of the hour is to broaden the focus. More funds need to be allocated towards developing climate technology designed to reduce emissions, improve energy efficiency and create more sustainable pathways for development. A greater focus needs to be laid on renewable sources of energy and boosting the electric vehicle’s ecosystem.
Companies and startups operating in the sector must be given benefits like PLIs, subsidies, and lower GST on the import of raw materials or equipment, etc. Investors and startup incubators backing such players should be provided tax exemptions and other capital gain benefits. By prioritizing climate tech incentives in the upcoming Union budget, India can lead the way toward a greener future for all citizens.”