AUTO INDUSTRY SEEKS STABILITY IN BUDGET 2024

India’s automotive industry is banking on the Government’s continued thrust on policy stability, spurring investment and infrastructure development in Budget 2024 which have, as part of the Government’s proficient and agile handling of fiscal policy issues in the last few years amidst global volatility and significant geopolitical risks, successfully shielded the Indian economy from major headwinds and catalysed the automotive industry.

- NIVEDITA MUKHERJEE

Continuing to benefit from recent developments, such as the reduced GST on EVs and chargers as well as road tax considerations which have helped narrow the price gap between EVs and fuel-based vehicles, the industry is batting for reduction in both input and output Goods and Service Tax (GST) for EVs and spare part.

Swapnesh R Maru, Deputy Managing Director – Corporate Planning and Manufacturing, Toyota Kirloskar Motor (TKM) considers a sustained growth path towards manufacturing excel lence to be critical to further enhance the country’s global competitiveness. “The emphasis given to the manufacturing sector through schemes such as PLI and significant focus towards both physical and digital infrastructure along with other measures including efforts to improve the ease of doing business has attracted large inflow of investments. Notably, the automotive sector also saw an upswing,” says Maru.

Santosh Iyer, Managing Director & CEO, MercedesBenz India is also batting for capex on infrastructural projects to continue, aiding the automotive sector. At the same time, Iyer draws attention to the luxury car industry’s significant value contribution to the GDP. “Our wish for a rationalized duty structure and GST stays on priority,” says Iyer.