The upcoming Union Budget is something to look out for, and the auto industry is keen on what the government has in store. However, this has also prompted the industry to request certain policies that will help boost sales and aid the government’s plan to achieve clean mobility. Apart from policies that will help the industry grow, carmakers, component manufacturers, and apex bodies have requested various other moves, including the reduction of GST.
In regards to the upcoming Union Budget, Toyota Kirloskar has also requested the government on certain aspects that will help the automotive sector grow and meet the government’s goal of clean mobility. A spokesperson for Toyota Kirloskar, speaking on the upcoming budget expectation said, “We believe that through its focus on Production Linked Incentive Scheme (PLI) for several key identified sectors, the Govt has sought to transform India’s economy by attracting huge investments in advance and future technologies, and for areas where India is currently highly import dependent. This initiative promises not only to make us self-reliant but also globally competitive. As the huge Govt allocation will be spread over the next five years, these schemes will give the desired boost without the sudden immediate burden on the exchequer.”
Toyota believes that the automotive industry is one of the sectors that will benefit directly through the PLIs for electronics and advanced chemistry cells (ACC). These measures will help create a vibrant and competitive local manufacturing ecosystem for advanced and green technologies at global scales, thus making India a strong manufacturing hub. The benefits will also trickle down the entire supply chain thereby also providing a boost to the MSMEs.
Since the PLIs focus on providing impetus to a greener future, these will help achieve the Government’s objectives of rapid carbon reduction. The spokesperson said, “Toyota’s philosophy too, has always been moving towards greener technologies and such measures from the Government will encourage all industries, to bring out all possible greener technologies going forward. We as pioneers of electrified technologies will continue to focus on mass electrification through the localisation of electrified vehicle parts. We believe the shift to a greener future can be hastened through policies, including taxation, being linked to transparent, easily measurable outcomes aligned to national objectives such as carbon reduction.”
The spokesperson added, “We also believe that this Govt. has been keenly working towards greater transparency, ushering in reforms and we see that one key step in this direction is the Faceless Assessment Scheme which will enhance transparency and build confidence in the system. Moreover, this will also improve revenue collection as well as contribute to improving the ease of doing business in India. We feel that the government should continue to further strengthen these measures going forward.”