Leading automakers want the government to retain green transportation initiatives and prioritize infrastructure in the forthcoming Budget this year. They propose continued infrastructure investment, streamlined duty arrangements, and luxury car priority in Goods and Services Tax.
The February 1 Budget should preserve favorable policies for green mobility and focus on substantial infrastructure development, according to several key automakers.
Mercedes-Benz India MD and CEO Santosh Iyer stressed the need of capital expenditure on infrastructure to help the automotive industry. He advocated for green mobility policies to accelerate electric vehicle uptake.
“We expect infrastructure capex to support the automobile sector. Mercedes-Benz India MD and CEO Santosh Iyer stated the government should prioritize green transportation and electric vehicle adoption.
Iyer also proposed rationalizing the duty structure and priority in Goods and Services Tax (GST) for luxury cars, which now pay 28% GST plus a cess on sedans and SUVs, totaling up to 50%.
Toyota Kirloskar Motor’s Deputy Managing Director Swapnesh R Maru voiced trust in the government’s greening efforts. Policy stability, investment, and infrastructure development boost global competitiveness and manufacturing and service sector growth, he said.
“Looking ahead, policy stability and continued emphasis on spurring investment and infrastructure development will not only further enhance the country’s global competitiveness but also lead to growth in the manufacturing and service sectors,” he said.
Raghupati Singhania, Chairman and Managing Director of JK Tyre & Industries, stressed the importance of continuous automotive policies for sectors growth and India’s goal of becoming the third-largest economy.
Mahindra Last Mile Mobility MD & CEO Suman Mishra stressed the role of electric three-wheelers and commercial vehicles in inclusive income generating. She requested the Union Budget 2024 to prioritize this sector through FAME support.
With the potential introduction of the FAME III plan, Kinetic Green founder and CEO Sulajja Firodia Motwani is optimistic about the government’s support for electric vehicles. Phase-II of FAME India, with Rs 10,000 crore in financial support, expires on March 31, 2024.
CarDekho Group CFO Mayank Gupta urged the government to fix GST inconsistencies in self-drive automobiles. He suggested fixing GST anomalies, lowering surcharges to cap personal tax rates at 30%, and extending long-term capital gains benefits to ESOPs.
“The government can consider addressing GST anomalies in self-drive cars, contemplating a personal tax rate cap of 30 per cent through surcharge reductions, and extending long-term capital gains benefits to employee stock ownership plans (ESOP)” .
Conclusion
Leading automakers are encouraging the government to retain green transportation initiatives and prioritize infrastructure in the forthcoming Budget. Mercedes-Benz India MD Santosh Iyer stresses the necessity of capital expenditure on infrastructure initiatives to support the automotive industry and accelerate electric vehicle adoption. He also wants a streamlined GST duty system and precedence for expensive cars. Toyota Kirloskar Motor Deputy Managing Director Swapnesh R Maru believes the government’s commitment to a greener future is worth policy stability, investment, and infrastructure development for global competitiveness and growth in manufacturing and services. Mahindra Last Mile Mobility MD Sanma Mishra and Kinetic Green founder Salajja Firodia Motwani also remain optimistic about government assistance for electric vehicles.
