Budget 2024: Indian Auto OEMs Put High Hopes on Localisation, GST Cut, Sustainable Mobility

By: Admin | July 20, 2024 | Categories: GST Recent News

As the Union Budget 2024 approaches, the Indian automobile industry has high expectations for policies that will drive growth and innovation in the world’s third-largest automobile market. Stakeholders are particularly keen on initiatives that promote the localisation of electric vehicle (EV) components, sustainable transportation, and technological advancements.

Key Expectations from Budget 2024:

Commercial Vehicles (CVs):

  • Public Infrastructure Investment: Industry experts are hopeful for fund allocations towards public infrastructure to support commercial vehicles.
  • Cost Reduction Policies: There is a need for targeted policies to make commercial vehicles more affordable, promoting a resilient transport-logistics ecosystem.
  • Electric LCVs and SCVs: The sector anticipates policies that will push for the adoption of electric light commercial vehicles (LCVs) and small commercial vehicles (SCVs).

EV Sector:

  • Support for EV Ecosystem: Following announcements in the interim budget, stakeholders expect continued government support to strengthen the EV ecosystem and promote technological advancements.
  • FAME 3 Scheme: Anticipated budget allocations under FAME 3 are expected to incentivize electric three-wheelers and include provisions for electric trucks.

Finance Sector:

  • MSME Support: The automobile finance sector hopes for budgetary reliefs to empower MSMEs and auto non-banking financial companies (NBFCs).
  • Policy Interventions: Favorable policies and regulatory reliefs could help NBFCs serve unbanked and underserved populations better.

EV Charging Infrastructure:

  • Local Manufacturing: Startups in the EV charging infrastructure sector expect the budget to encourage local manufacturers.
  • Dedicated Budget for Charging Infrastructure: Investment in charging stations, especially for public transport like e-buses, could drive innovation in charging technologies.

Two-Wheelers:

  • Reduced GST Rates: Two-wheeler manufacturers are looking for reduced GST rates and standard GST certification.
  • Subsidies and Indigenisation: Support for EV infrastructure and R&D in sustainable materials and indigenous manufacturing is crucial.
  • Training Programs: Incentives for training specialized EV technicians and engineers are essential for developing a skilled workforce.

Tyre Sector:

  • Strategic Reforms: The sector hopes for strategic reforms in infrastructure and manufacturing to propel India’s economy.
  • Business-Friendly Environment: Addressing issues like land, labour, and power is vital for fostering a business-friendly environment and promoting sustainability.

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Stay updated with the latest expectations and developments as the Union Budget 2024 unfolds, shaping the future of India’s automobile industry.

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