The Budget 2023 was presented today in the Parliament by Finance Minister Nirmala Sitharaman. A few major announcements were made in regards with the automobile industry in the budget. The most prominent being allocation of Rs 35,000 Crore in support of green projects and net-zero emission products. The FM reiterated India’s stand of achieving by carbon neutrality by 2070.
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The FM also announced in her budget speech that Rs 19,700 Crore have been allocated for the production of green hydrogen. Furthermore, announcements were also made keeping in centre the electric vehicles and scrappage policy. The auto industry, as a whole, was quite excited and ecstatic by these budget announcements made by FM Sitharaman. Below are some of the top reactions from the industry.
Rohit Vadera, CEO, PURE EV, said “We are very pleased with the budget and the government’s vision towards the EV industry. Not only are they continuing to support the industry with lower GST rates, lower customs duty and keeping the status quo with the FAME scheme but also are removing the customs duty related to capex towards the sub-component manufacturing. This along with the existing PLI Auto and PLI ACC schemes will lay the foundation for a smooth transition of the EV industry to the next phase by focusing on developing a sustainable EV ecosystem.”
Sunjay J Kapur, President ACMA, said, “The budget is a blueprint of a digitally enabled, Aatmanirbhar Bharat, coupled with measures that will drive sustainable yet inclusive growth at a rapid pace. Focus on exports, manufacturing, local value addition and encouraging green energy and mobility are indeed steps in the right direction. Further, the proposals for personal Income Tax will put more money in the hands of people thus fuelling consumption leading to economic growth. ACMA is also delighted by the measures announced for skilling and research in hi-tech areas such as AI, Robotics, 5G, Mechatronics and 3D printing, among others.”
“It is really great to see how environmental sustainability has been one of the top 7 priorities in this budget. The Pro-EV budget focuses on much-needed initiatives such as Customs Duty reduction from 21% to 13% on capital goods and machinery required for Lithium Batteries and an extension of the subsidies on EV batteries for one more year. This will certainly encourage each EV manufacturer to contribute to Government initiatives to achieve mass EV adoption by 2030. This will also encourage investments in the EV sector which help new players to continue with innovation.” said Mr. Anmol Bohre, Co-founder & Managing Director of Enigma EV Startup.
Mr. Ketan Mehta, CEO and Founder of HOP Electric Mobility, India’s fastest growing electric 2-wheeler manufacturer, says “A largely all-encompassing inclusive budget offers something to cheer about for all sectors; emphasis on rural development – where resides the real BHARAT, and Green sustainable climate consciousness is growth focused for a bright future. The Budget will drive economic growth, create jobs and attract investments. Pushing investments in sectors such as agriculture, fishery and cattle, and supporting procurement of components for electric vehicles, and focus on clean energy and fuels like Hydrogen will significantly enhance the prospects of segments that were in need of attention.”
Mr. Mukesh Taneja Co-founder & CEO of GT Force, said “”Auto sector in India has been struggling for way too long. It was expected that the foray of EVs will give a new life to the players, however, the sector continues to suffer from initial ownership costs and other factors. The penetration of EV brands and the adoption of the new technology seems to be taking time. Amidst this, the announcement by Hon’ble FM to replace old government vehicles will certainly play a game changer for the sector. Furthermore, manufacturing lithium-ion battery has been a challenge for EV players, and it was the first ask of EV players to have customs duty exemptions on the import of capital goods and machinery required for lithium-ion batteries. Overall the budget has certainly taken steps to revive the sector.”
Dr. Sudhir Mehta, Founder & Chairman, Pinnacle Industries & EKA Mobility, said “Congratulations to the Hon’ble Finance Minister for presenting a holistic & growth-oriented budget. The focus on capital expenditure with promising prospects for the commercial vehicle, green mobility, and railway sector is indeed encouraging. One of the most progressive announcements is the custom duty removal on capital goods imported for manufacturing Li-ion batteries, for electric vehicles built locally in India, which will ensure the cost rationalization for electric vehicles substantially. This will not only help us achieve our sustainability goals but also promote ‘Made in India’ products & technology. The government is consistent in its focus on green mobility, and budget allocation toward the National Hydrogen Mission will bring new opportunities for growth & innovation for the country.
“The automotive sector is also encouraged by the new scrappage policy, which will positively impact the entire value chain by creating more demand in the sector and giving a boost to the economy. Adequate funding to scrap old government vehicles and ambulances will create additional demand for small & medium commercial vehicles, which will also lead to more job opportunities in the sector,” added Mehta.
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