The upcoming Union Budget presents an opportunity to address some pressing needs of the automotive sector. A long-term vision for favorable tax structure catering to different automotive technologies would certainly benefit the industry. The product development cycles are quite lengthy and require substantial investment which needs to be considered. Simplifying the GST structure for the different classes of vehicles & components is another ask.
The Government‘s PLI scheme facilitates in boosting investments in domestic manufacturing. Budget allocation on facilitating the EV ecosystem like charging infrastructure will give further lift to sustainable mobility.
Allocating a budget for better and safe road infrastructure will facilitate the growth of the auto industry.
There are early signs of auto industry growth slowing down. Therefore, budgetary initiatives to boost disposable income of consumers are necessary to support robust growth.
I am optimistic that this Budget will introduce practical and forward-looking measures to strengthen the automotive sector and support its role in India’s economic growth and environmental ambitions.