The Union Budget 2023 will be presented on February 1 in the Parliament by Nirmala Sitharaman, Minister of Finance, Government of India. Identical to every sector, the auto industry too has certain expectations from the budget. This includes the emerging electric two-wheeler and four-wheeler brands, luxury automakers, as well as commercial auto companies. Even the component industry and tyre manufacturers are hoping for some benefits and incentives in the upcoming budget 2023. So, lets talk about the pre-budget expectations of auto industry in this piece.
Mr. Akshit Bansal, Founder & CEO of, Statiq said, “As a leading EV-charging network in the country, the government should re-examine its tax and tariff policies on not only EVs but also related component requirements for the e-mobility ecosystem. For instance, the a GST rate of 18% is applicable on battery components and other raw materials with a relatively modest 5% on the purchase of EVs. This creates a discrepancy in the market even leading to blockage of working capital for the industry.”
“At the same time, the government should also consider reducing customs duty on components being imported into the country. A few additional tax exemptions to individuals investing into the ecosystem like that for buying an EV. EV infrastructure needs to be classified as an asset which will give it the necessary impetus towards institutional financing for such investments by individuals,” added Bansal.
Atul Bansal, CFO, Yokohama Off-Highway Tires said, “As we come to the budget, we are looking at certain things in the Tyre Industry like, we would like remission of duties and taxes with relation to exports to apply both to SEZ and EOU. Second is, Production Linked Incentive Scheme to be introduced for tyres as we see big opportunity over there for the growth.”
Mr. Vikram Gulati, Country Head and Executive Vice-President, Toyota Kirloskar Motor said that the Japanese brand is hoping that the existing policy initiatives will continue in order to accelerate rapid consumer adoption of green technologies.
Santosh Iyer, Managing Director & CEO, Mercedes-Benz India also shared his expectation from the Luxury auto Industry point of view with News18. He said, “We are optimistic about the upcoming Union budget and expect it to be progressive and forward-looking, acting as a catalyst for India’s long-term growth trajectory. We hope for continued capital outlay for development of roadways and infrastructure, with a timely implementation of the ongoing projects.”
“In the recent years, we have witnessed the direct impact of better roadways and inter-state connectivity in propelling demand for automobiles, and boosting the industry and economy. We welcome the policy makers’ continued strategic focus on electrification and request for a long-term outlook and continuation of these stable policies, encouraging e-mobility adoption in India. The current tax incentives and other benefits should continue for a period of 8-10 years in order to boost growth in the EV segment, advancing the inflection point for EVs and making the auto industry gain the critical mass for these vehicles,” added Iyer.
“Incentivizing the creation of charging infrastructure will play an important role in expediting EV adoption in the country and boosting customer confidence. Finally, we wish for reconsideration of the current import duties for EV’s to boost their demand, resulting in a faster acceleration for achieving the Government’s vision of a sustainable green mobility ecosystem in the country,” concluded Santosh.
Rohit Vadera, CEO, PURE EV, said “Lack of charging infrastructure, land availability for charging station development, and the electricity grid not being ready are the major bottlenecks that should be resolved on priority to boost the sale of EVs across India. The Government is already working towards the enhancement of charging infrastructure. We expect the Government to work towards the growth of charging infrastructure at a faster rate than the earlier years.”
Read all the Latest Auto News here
Comments
0 comment