India's interim budget approaches, anticipation is rising within the country's auto industry, eager for measures that will propel continuous growth, accelerate the electric vehicle (EV) transition, and ease the tax burdens. Leaders spanning various sectors in the automotive ecosystem, including equipment manufacturers, luxury automakers, and EV startups, have voiced their expectations, pointing out crucial requests such as import duty cuts, infrastructure development, policy stability, and incentives for electric vehicles.
Prashanth Doreswamy, President and CEO of Continental India, has expressed high expectations for the upcoming budget, emphasizing the need for strategic announcements to ensure the sustained growth of the industry.
He said “The industry is keenly awaiting an announcement on import duty relief which will have a positive impact on the raw material costs thus helping to stabilize the cost of commodities. This will in turn help in boosting growth and competitiveness in the automotive industry, especially the export market. Even with the focus on localization, there is a need for fair competition while safeguarding domestic interests. Streamlining import processes and reducing bureaucratic hurdles in India can attract foreign investments and enable the smooth flow of technology.”
Santosh Iyer, Managing Director & CEO, Mercedes-Benz India, added “We expect capex on infrastructural projects to continue, aiding the automotive sector. The policy push for green mobility should remain a key focus for the government, encouraging faster adoption of electric vehicles. The luxury car industry has a significant value contribution to the GDP and our wish for a rationalized duty structure and GST stays on priority. Overall, we expect consistency in various policies and no surprises in the upcoming budget.”
Chetan Maini, Co-founder and Chairman, SUN Mobility said “The industry in unison is looking for a level playing field for all technologies. This would mean removing the existing discrepancies in GST and subsidies for swappable batteries. Battery swapping is indispensable to accelerate the adoption of electric mobility and achieve the 2030 targets of EV penetration. I’m keen to see the release of a comprehensive Battery Swapping Policy in Budget 2024”
Devndra Chawla, CEO & MD, GreenCell Mobility said “One significant recommendation is to secure permanent viability gap funding for financially pressured State Transport Units (STUs) and to develop credit guarantee systems to reduce lending risks.
“Standardizing Green Energy Open Access Rules, toll exemptions for e-buses, and setting consistent prices for e-bus depots are critical to creating a suitable climate. Initiatives such as wayside charging infrastructure on national highways, specialised facilities at transport hubs and strategic highway adoption plans for pure e-bus operations demonstrate our commitment to sustainable mobility. Our entire plan includes opening up STU depots to private e-buses, easing freight transportation, and optimising charging costs through regulatory measures, all of which are consistent with our national commitment to environmentally friendly solutions.” he added.
Ashwin Bhandari, CEO and co-founder of iVOOMi, proposed a significant integration of GST rates for batteries and scooters. "We advocate for a targeted focus on demand-side incentives through FAME, specifically tailored for commercial users and middle-class markets with extensive daily usage. From the Budget 2024, we expect that there will be policies towards balancing consumer financing, promoting product standardization, and extending PLI coverage to MSMEs that will collectively establish an equitable environment, nurturing a resilient and inclusive electric vehicle ecosystem."
Anmol Singh Jaggi, CEO, BluSmart said, “Charging infrastructure is a critical enabler and while there is an 18% GST levied on EV charging, electricity supply is exempt, rationalizing the tax structure will help accelerate the vision of promoting electric mobility. Secondly, accelerating access to real estate & mandating charging infrastructure in urban developments will reduce range anxiety and make EVs a more viable option for public transportation.”
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