As India nears the end of another financial year, hopes are rising on the road to economic recovery amid the pandemic. Industry sectors are now eagerly waiting for the announcement of the new budget as there is a serious need for many reforms to bring the economy back on the growth path provided we do not have a new look and lockdown. The automotive sector is also grappling with the pandemic but is now seeing long-term growth on the horizon.
Interestingly, the region is also sitting at the cusp of the impending electric revolution. However, the transition from fossil-fuel to electric mobility is not easy and will require a strong focus from the government. The industry is seeking relaxations and incentives to encourage electric vehicle adoption and this time also there are pre-budget expectations for policies that are expected to put the sector on a long-term growth path. So far, the government has been vocal about its intention to support the transition to electrification and also announced some incentives. However, large scale change requires policies with wide coverage and rapid focus on development of critical technologies in the country. That said, there are other urgent requirements on the taxation fronts, infrastructure among many others that will help steer the industry on a long-term growth path.
What Automakers Think and Want Automakers across categories share their expectations from the upcoming budget to brief us on the key requirements of the automotive sector.
From the side of electric mobility, Tarun MehtaCo-Founder and CEO, Ather Energy, said, “Demand for electric vehicles continues to grow as consumers benefit from FAME II subsidies and tax exemptions. In order to keep up with consumer demand, there is an increasing demand for electric vehicles. As for adoption, we expect the FAME II subsidy to continue beyond 2023. The EV sector needs such early bird incentives to accelerate manufacturing and consumer adoption to ensure sustainability in the years to come. We Petrol We see emerging new players offering reliable products and value as compared to vehicles. Another important aspect for rapid EV adoption is charging infrastructure development to boost consumer confidence. All existing and upcoming housing projects and commercial There is an urgent need to ensure mandatory EV charging infrastructure in establishments.In addition, to encourage setting up of EV charging stations in existing residential areas, housing complexes and commercial establishments. This will go a long way in setting up the infrastructure. ,
Adding to the point on FAME subsidy, Suhas RajkumarThe CEO and Founder, Simple Energy, said, “The government is trying to support the electric vehicle industry through FAME and other schemes to help the sector produce better products at affordable prices, which in turn help people Is encouraging to switch to EVs. Consumer interest in EVs is on the rise; however, expectations regarding performance remain high. As consumers are concerned about the general lack of charging infrastructure, the government should This sector needs to move forward by providing for the budget. From the budget, we expect more relief to younger, more ambitious players in the electric vehicle vertical like ours as we have been hit by rising component prices and semiconductor shortages. Cooperation of EV players should be encouraged and more money should be used towards clean fuel vision of the government.For mass adoption of electric vehicles in India, we need a seamless EV infrastructure which is highly capable and connected , durable and have a more intelligent mobility landscape.”
putting forth his views, Martin SchwenkoMercedes-Benz India Managing Director and CEO said, “The Union Budget Employment generation, infrastructure development, introduction of latest technologies and growth in de-carbonization efforts should be the goal of long term overall growth for the auto industry. With stable policies and a clear roadmap for the sector, accelerated growth can be achieved by transitioning the industry into the rapidly emerging e-mobility era, placing the Indian auto industry on the global map. The existing taxation structure needs to be revisited with a clear focus on direct tax changes to boost consumption, boost exports, direct job creation and promote digitisation. Continuing government spending on infrastructure projects will further fuel the demand for both passenger and commercial vehicles.
A spokesperson for Toyota Kirloskar Motor said, “We believe that through its focus on Production Linked Incentive Schemes (PLIs) for several key identified sectors, the government has helped by attracting huge investments in advance and futuristic technologies. and has sought to transform India’s economy. Sectors where India is currently heavily dependent on imports. This initiative promises to make us not only self-reliant but globally competitive. Since huge government allocation will be spread over the next five years These schemes will give the desired boost without sudden immediate burden on the exchequer. Automotive industry is one of the sectors which will be benefitted directly as well as through PLI for Electronics and Advanced Chemical Cells (ACC). These measures will bring advanced and Green technologies will help in creating a vibrant and competitive local manufacturing ecosystem. Global scale, thus making India a strong manufacturing hub. The benefits will also impact the entire supply chain, thereby affecting MSMEs as well. Getting a boost.”
Doctor Raghupati SinghaniaChairman and Managing Director, JK Tire & Industries said, “The overall expectation from the Budget for the coming financial year is fundamental growth and ease of doing business through removal of bottlenecks in every aspect thereby freeing up the economy of India. The growth story is approaching a turning point. The automotive sector, in the recent past, has been hit by strong headwinds. A simplified tax structure, new incentives for the auto and auto component sector are the need of the hour. Mobility A vibrant automotive industry not only drives overall economic growth but also creates significant upstream and downstream jobs.
Summary
Clearly, the industry is waiting for some major announcements around electric mobility and any positive announcement on this front will go a long way towards easing the transition. Moreover, the automotive sector is also expected to improve on the taxation front as it is one of the most heavily taxed industries, leading to higher purchase costs for the end consumer. These sectors top the list of expectations from the auto sector, among other areas, including work on infrastructure, development of clear policies and a vision for long-term and sustainable growth.
Interestingly, the region is also sitting at the cusp of the impending electric revolution. However, the transition from fossil-fuel to electric mobility is not easy and will require a strong focus from the government. The industry is seeking relaxations and incentives to encourage electric vehicle adoption and this time also there are pre-budget expectations for policies that are expected to put the sector on a long-term growth path. So far, the government has been vocal about its intention to support the transition to electrification and also announced some incentives. However, large scale change requires policies with wide coverage and rapid focus on development of critical technologies in the country. That said, there are other urgent requirements on the taxation fronts, infrastructure among many others that will help steer the industry on a long-term growth path.
What Automakers Think and Want Automakers across categories share their expectations from the upcoming budget to brief us on the key requirements of the automotive sector.
From the side of electric mobility, Tarun MehtaCo-Founder and CEO, Ather Energy, said, “Demand for electric vehicles continues to grow as consumers benefit from FAME II subsidies and tax exemptions. In order to keep up with consumer demand, there is an increasing demand for electric vehicles. As for adoption, we expect the FAME II subsidy to continue beyond 2023. The EV sector needs such early bird incentives to accelerate manufacturing and consumer adoption to ensure sustainability in the years to come. We Petrol We see emerging new players offering reliable products and value as compared to vehicles. Another important aspect for rapid EV adoption is charging infrastructure development to boost consumer confidence. All existing and upcoming housing projects and commercial There is an urgent need to ensure mandatory EV charging infrastructure in establishments.In addition, to encourage setting up of EV charging stations in existing residential areas, housing complexes and commercial establishments. This will go a long way in setting up the infrastructure. ,
Adding to the point on FAME subsidy, Suhas RajkumarThe CEO and Founder, Simple Energy, said, “The government is trying to support the electric vehicle industry through FAME and other schemes to help the sector produce better products at affordable prices, which in turn help people Is encouraging to switch to EVs. Consumer interest in EVs is on the rise; however, expectations regarding performance remain high. As consumers are concerned about the general lack of charging infrastructure, the government should This sector needs to move forward by providing for the budget. From the budget, we expect more relief to younger, more ambitious players in the electric vehicle vertical like ours as we have been hit by rising component prices and semiconductor shortages. Cooperation of EV players should be encouraged and more money should be used towards clean fuel vision of the government.For mass adoption of electric vehicles in India, we need a seamless EV infrastructure which is highly capable and connected , durable and have a more intelligent mobility landscape.”
putting forth his views, Martin SchwenkoMercedes-Benz India Managing Director and CEO said, “The Union Budget Employment generation, infrastructure development, introduction of latest technologies and growth in de-carbonization efforts should be the goal of long term overall growth for the auto industry. With stable policies and a clear roadmap for the sector, accelerated growth can be achieved by transitioning the industry into the rapidly emerging e-mobility era, placing the Indian auto industry on the global map. The existing taxation structure needs to be revisited with a clear focus on direct tax changes to boost consumption, boost exports, direct job creation and promote digitisation. Continuing government spending on infrastructure projects will further fuel the demand for both passenger and commercial vehicles.
A spokesperson for Toyota Kirloskar Motor said, “We believe that through its focus on Production Linked Incentive Schemes (PLIs) for several key identified sectors, the government has helped by attracting huge investments in advance and futuristic technologies. and has sought to transform India’s economy. Sectors where India is currently heavily dependent on imports. This initiative promises to make us not only self-reliant but globally competitive. Since huge government allocation will be spread over the next five years These schemes will give the desired boost without sudden immediate burden on the exchequer. Automotive industry is one of the sectors which will be benefitted directly as well as through PLI for Electronics and Advanced Chemical Cells (ACC). These measures will bring advanced and Green technologies will help in creating a vibrant and competitive local manufacturing ecosystem. Global scale, thus making India a strong manufacturing hub. The benefits will also impact the entire supply chain, thereby affecting MSMEs as well. Getting a boost.”
Doctor Raghupati SinghaniaChairman and Managing Director, JK Tire & Industries said, “The overall expectation from the Budget for the coming financial year is fundamental growth and ease of doing business through removal of bottlenecks in every aspect thereby freeing up the economy of India. The growth story is approaching a turning point. The automotive sector, in the recent past, has been hit by strong headwinds. A simplified tax structure, new incentives for the auto and auto component sector are the need of the hour. Mobility A vibrant automotive industry not only drives overall economic growth but also creates significant upstream and downstream jobs.
Summary
Clearly, the industry is waiting for some major announcements around electric mobility and any positive announcement on this front will go a long way towards easing the transition. Moreover, the automotive sector is also expected to improve on the taxation front as it is one of the most heavily taxed industries, leading to higher purchase costs for the end consumer. These sectors top the list of expectations from the auto sector, among other areas, including work on infrastructure, development of clear policies and a vision for long-term and sustainable growth.
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