The government needs to continue with favorable policies promoting green mobility, while at the same time focusing on infrastructure development at a strong pace in the next budget, according to some major auto industry players.
The federal government is scheduled to submit its interim budget on February 1st.
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Santosh Iyer, MD and CEO, Mercedes-Benz India, said, “We expect capital investment in infrastructure projects to continue and support the automotive sector. “This remains a key focus for the government and should help drive the uptake of electric vehicles.”
The luxury car industry contributes significantly to GDP and the sector wants streamlined tariff structure and GST prioritization, he added.
“Overall, we expect there to be consistency across the various policies and no surprises in the next budget,” Iyer said.
Currently, luxury cars are subject to the highest GST of 28%, sedans are subject to an additional tax of 20% and SUVs are 22%, taking the total tax rate up to 50%.
Swapnesh R. Maru, Deputy Managing Director (Corporate Planning, Finance & Administration, Manufacturing) Toyota Kirloskar Motor The company said it remains confident it will continue its efforts to transition into the future.
He said: “Looking to the future, a continued focus on policy stability and promoting investment and infrastructure development will not only further strengthen the country’s international competitiveness, but also strengthen the manufacturing and services sectors. It will lead to growth,” he added.
Raghupathi Singhania, Chairman and Managing Director of JK Tire & Industries, said a consistent auto policy will drive sectoral expansion.
“A solid budget is essential for India to become the world’s third largest economy,” he said.
Suman Mishra, MD and CEO, Mahindra Last Mile Mobility, said electric three-wheelers and commercial vehicles can help many people achieve economic upliftment by facilitating comprehensive income generation. He said he would pave the way.
“We call on the Union Budget 2024 to prioritize this sector through continued support for FAME and promote economic empowerment for the environmental well-being of the highest value for all,” she said. said.
Sulajja Firodia Motwani, founder and CEO of Kinetic Green, expressed optimism that the government will continue to support EVs with the announcement of the FAME III scheme.
Currently, Phase II of FAME India scheme is being implemented for five years from April 1, 2019 with a total budget support of Rs 10,000 crore. Expiration date is set to March 31, 2024.
CarDekho Group Chief Financial Officer Mayank Gupta expected the government to look into the GST anomaly on self-driving cars.
“Governments could consider addressing GST anomalies on self-driving cars, considering lowering the surcharge to cap personal tax rates at 30%, and extending long-term capital gains benefits to employee stock ownership plans (ESOPs). ”