NEW DELHI: All eyes are on the Interim Budget 2024, which will be tabled in Parliament by Union Finance Minister Nirmala Sitharaman on February 1. Expectations are high for new announcements and amendments to policies announced in previous budgets. India’s auto industry hopes to leverage new government policies, laws, tax benefits and incentives, and support for infrastructure development to accelerate its transition to green mobility. According to his Niraj Rajmohan, co-founder and CTO of Ultraviolette, the two-wheeler industry has benefited immensely from electric vehicle (EV) incentives and his FAME policy. “The reduction in GST rates on EVs and chargers is helping to narrow the price gap between EVs and fuel-powered vehicles,” he said. Although the FAME subsidy does not apply to us due to the nature of our offer as there is a cap on the price of eligible EVs, we acknowledge the government’s rationale and look forward to expanding support. doing. We believe our position will be significantly strengthened if the FAME subsidy is extended and all factory price caps on EVs are removed. ”
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To strengthen globalization and promote the ‘Make in India’ program for EVs, “it is important to encourage multiple segments and the technology is universal and should not be restricted.” he said. Regarding the export of EVs, we are starting to export vehicles, especially to developed countries, and are beginning to enjoy the benefits. We look forward to further benefits associated with ‘Make in India’ in the global market, fostering innovation and growth. We eagerly look forward to positive developments consistent with our vision for technological advancement, sustainability and global market expansion. ”
Tax benefits
Dinesh Arjun, Co-founder and CEO, Raptee Energy, spoke about the need to reduce GST rates on EVs and further reduce import duties on EV components in the 2024 interim budget. Ta. With growth expected in the coming years, it is imperative that governments foster a supportive ecosystem. To stimulate investment opportunities, potential investors should be encouraged along with an essential reduction in his GST rates for electric vehicles and charging stations. Additionally, reductions in import duties on electronic components can ease the burden on the industry. The industry expects a significant GST reduction, especially on lithium-ion battery packs and cells, which play a pivotal role in the EV sector, with a reduction from 18% to 5% on lithium-ion battery packs and cells. want to be. It is critical that we work collaboratively within our budgets to improve the ease of doing business and encourage local businesses to enter the market. ”
Raghupathi Singhania, Chairman and Managing Director of JK Tire & Industries, said: Strong GDP growth is expected, supported by progressive policy measures on business, investment and resilience. A focus on last-mile connectivity, infrastructure and a consistent automotive policy will help expand the sector. A strong budget is essential for India to become the world’s third largest economy. ”
Narinder Mittal, Country Manager and Managing Director, Agribusiness, CNH India and SAARC, said the agriculture sector needs a boost through modern farming methods and financial literacy. He further said, “I hope that measures will be taken that can further support the introduction of innovations and technologies to improve agricultural mechanization in our country, in order to prepare the agricultural sector for the future.” Efforts to upskill farmers and improve their understanding of modern farming methods, financial literacy and other related aspects will be crucial for the industry in the long run. ”
aftermarket
Aftermarket companies such as BluSmart and Zoomcar are looking to the 2024 Budget to streamline taxes on EVs, mobility apps to ease travel, and the involvement of real estate developers in developing India’s EV charging infrastructure.
Anmol Singh Jaggi, CEO of BluSmart, said: “The transport sector and electric mobility play a key role in achieving climate goals. As we move towards adopting cleaner alternatives, we are ensuring that budgets are aligned with sustainability in the national economy. We hope to take into account growth. The FAME policy has played a major role in revitalizing the EV sector, thereby enabling cleaner mobility solutions. Firstly, charging infrastructure is an important enabler. Tax rationalization will help accelerate the vision of promoting electric mobility, as charging of EVs is subject to 18% GST but electricity supply is exempt. Accelerating access to real estate and mandating charging infrastructure in urban developments will reduce range anxiety and make EVs a more viable option for public transportation.”
Zoomcar CEO and co-founder Greg Moran said, “Last year’s budget paved the way for greater EV adoption in India, and as a result, improved customer mental health to make greener and smarter choices. has changed rapidly. We believe that the 2024 Union Budget is a path to innovative policies that accelerate sustainable mobility solutions and drive economic resilience, and the evolution of transport in the automotive industry. We empower our customers with cost-effective solutions and mobility apps that support
Auto parts
Because auto parts play such a critical role in the industry, companies like Dana and Uno Minda are excited about Budget 2024 and are calling for the following changes to the industry:
NK Minda, Chairman and Managing Director of Uno Minda, said: “While we appreciate recent government policy initiatives such as PLI, FAME and BNCAP to foster growth, we are looking to further build on this momentum. , calls for further policy intervention to rationalize the GST structure for auto parts.” , incentives and tax incentives for research and development, and the introduction of a harmonized import duty structure for auto parts.
He further said that extending the exemption under BAB Article 115 for new manufacturing companies until March 31, 2026 would encourage further investment and job creation. Furthermore, continued support for EVs through the extension of FAME-II subsidies, increased charging infrastructure investment, and reduction in GST tax rates for EVs remains paramount to accelerate India’s transition to sustainable mobility. It is. We urge governments to craft a budget that fosters confidence, fosters innovation and paves the way for a prosperous, sustainable and globally competitive auto sector. ”
Gajanan Gunde, Country Director and Vice President, Dana India, said, “With expectations for improved ease of doing business in manufacturing and streamlining of regulatory processes, governments are looking to digitize approval processes, improve administrative “We may consider reforms such as reducing hurdles and relaxing regulations.” Professional industry promotion organization. Reductions in industrial income tax and faster establishment and licensing procedures are consistent with the industry’s need to increase its competitiveness. Combined with online platforms, governments can offer targeted tax incentives to manufacturing entities, and the creation of specialized zones or clusters for vehicle manufacturing can further streamline processes and encourage collaborative It has the potential to promote economic growth. ”
“In the context of encouraging high-tech advances, particularly in semiconductors and EV components through the PLI scheme, the government has taken an initiative among industry players and research institutes to accelerate technological innovation, and as a hub for cutting-edge automotive solutions. We are strengthening India’s position in the FAME II plan.”For the FAME II plan, the government is likely to consider feedback from the industry. Additionally, fostering public-private partnerships for EV infrastructure development has the potential to accelerate the growth of electric vehicles.”
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