Indian Auto OEMs Pin Hopes on Budget 2024: Localisation, GST Cut, and Sustainable Mobility

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

The interim budget earlier this year left the automobile industry largely unchanged, prompting high expectations for the upcoming Union Budget 2024, scheduled for July 23, 2024. As the world’s third-largest automobile market, stakeholders anticipate pivotal policy changes to stimulate growth.

Key Expectations from Budget 2024:

  1. Indigenisation of EV Components:
    Indian auto manufacturers are eager for increased localization of electric vehicle (EV) components to align with the government’s ‘Atmanirbhar Bharat’ initiative.
  2. Sustainable Transportation:
    There is a strong call for expanded support for sustainable transportation solutions, including incentives for electric commercial vehicles (EVs) and infrastructure development.
  3. GST Reduction:
    Hopes are high for a reduction in Goods and Services Tax (GST) rates, particularly for electric vehicles, to make them more affordable and encourage adoption.
  4. EV Infrastructure Investments:
    Expectations include substantial investments in EV charging infrastructure to facilitate the transition to electric mobility, especially in public transport.
  5. Support for Commercial Vehicles:
    The commercial vehicle sector anticipates targeted policies to lower costs and promote electric light and small commercial vehicles (LCVs and SCVs).
  6. Financial Sector Support:
    Auto finance sectors look forward to budgetary reliefs that can empower MSMEs and non-banking financial companies (NBFCs) to expand their services.
  7. Technological Advancements:
    The budget is expected to promote technological innovations in battery technology and logistics solutions, crucial for the EV sector’s growth.
  8. Two-Wheeler Industry:
    Manufacturers are hopeful for streamlined GST processes and subsidies to boost the adoption of electric two-wheelers (E2Ws) across India.
  9. Tyre Sector Reforms:
    Amid global challenges, strategic reforms are anticipated to enhance India’s manufacturing capabilities and infrastructure.

Conclusion:
The automotive industry awaits Budget 2024 with optimism, anticipating comprehensive measures to propel sustainable mobility and strengthen India’s position as a leader in electric vehicle technology.

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