According to some leading companies in the automobile sector, the government needs to continue with favorable policies to promote green mobility, and also focus on infrastructure development at a faster pace in the upcoming budget.
The central government is all set to present the interim budget on 1 February.
“We expect capital expenditure on infrastructure projects to continue, which will support the automotive sector. Santosh Iyer, MD and CEO, Mercedes-Benz India, said policy efforts for green mobility should remain a key focus of the government to encourage faster adoption of electric vehicles.
He said the luxury car industry has a significant contribution to the Gross Domestic Product (GDP) and this segment aspires for a rational duty structure and GST on priority.
Overall, we expect stability across various policies and no surprises in the upcoming Budget,” Iyer said.
Luxury vehicles currently attract the top GST slab of 28 per cent, with an additional cess of 20 per cent on sedans and 22 per cent on SUVs, taking the total tax burden to 50 per cent.
Swapnesh R Maru, Deputy Managing Director (Corporate Planning, Finance & Administration and Manufacturing), Toyota Kirloskar Motor, said the automaker is confident that the government will continue its efforts towards shifting the economy and transportation sector to a green future that is sustainable. Be less dependent on fossil fuels.
“Looking ahead, policy stability and continued emphasis on promoting investment and infrastructure development will not only enhance the country’s global competitiveness, but also boost manufacturing and service sector growth,” he said.
JK Tire & Industries Chairman and Managing Director Raghupati Singhania said consistent automotive policies will boost regional expansion.
A strong budget is important for India’s journey to become the third largest global economy,” he said.
Suman Mishra, MD and CEO, Mahindra Last Mile Mobility, said that inclusive income generation, driving electric three-wheelers and commercial vehicles paves the way for financial upliftment of many people.
“We call for prioritizing this sector in the Union Budget 2024 through continued FAME support, promoting economic empowerment for the most deserving and environmental well-being for all,” he said.
Sulajja Firodia Motwani, Founder and CEO, Kinetic Green, expressed hope that the government will continue to support EVs with the announcement of the FAME III scheme.
Currently, Phase-II of the FAME India Scheme is being implemented with a total budgetary support of Rs 10,000 crore for a period of five years from April 1, 2019. It is scheduled to expire on March 31, 2024.
CarDekho Group CFO Mayank Gupta expressed hope that the government will look into GST anomalies in self-drive cars.
“The government may consider addressing GST anomalies in self-drive cars, considering a personal tax rate cap of 30 per cent through reduction in surcharge and increasing long-term capital gains benefits for employee stock ownership plans (ESOPs) “
(This story has not been edited by News18 staff and is published from a syndicated news agency feed – PTI)
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