The Indian automobile market has distinguished itself as the fourth-largest producer of automobiles in the world with an estimated worth of $222 billion dollars. In support, the government has extended various incentives such as FAME II, PLI and EV-specific state policies. Not to forget, the sonorous ring of ‘Make in India’ has also prompted a push and nudged India to become the third-largest automobile market in the world.
With the Union Budget 2023-2024 just around the corner, the third year after the COVID-19 pandemic, we asked around the automobile sector for its expectations and while the industry is prepared for more allocation for electric vehicles, and introducing EVs in their portfolio, uniform goods and services tax rates is also expected to be a part of the 2023 budget presented by Finance Minister Nirmala Sitharaman on February 1.
Budget 2023 expectations include GST rates, EV battery policy
Speaking exclusively to Financial Express, Santosh Iyer, MD & CEO at Mercedes-Benz India Pvt. Ltd said “Policy continuity is very important for us. The government has done a great job in providing incentives for EVs when it comes to GST and the state governments have also done a lot for road tax not being there. This is a very fast enabler to adopt EVs. This should be there for a longer period of time till we have a big threshold on EVs.”
At a media interaction revealing their first electric car for India, the eC3, Citroen Brand Head Saurabh Vatsa spoke to Financial Express and highlighted the very long request of GST rationalisation for the industry. “It has been long pending, and that’s the only thing. I am sure the government is doing a whole lot of things for electrification purposes whether it is FAME II or PLI, production-linked incentives, and we (Citroen) are a part of that, and we are bringing in the EVs. From a technology perspective, the OEMs will step in and they will bring in the technology from an overall governance perspective and by putting in the right taxation, the government will do its best and that’s what we are looking forward to.”