The automotive industry in India is growing leaps and bounds, and with the upcoming Budget 2024, the expectations of some additional perks will further drive growth. The industry stakeholders hope to see some positive news that will further help grow the momentum.
Amit Lakhotia, Founder & CEO, Park+: “Indian cities are evolving at a rapid rate- migration, infrastructure upgrades and our pursuit to build 100 smart cities by 2024 has been a game changer. Having said that, for India to truly build smart cities, it is imperative that we also embed smart vehicular management systems within the current urban architecture. With over 4cr+ vehicles on Indian roads today, we need to ensure that real estate players, auto-tech startups, EV OEMs, local municipalities, and government bodies, work together to offer services to make Indian roads smart and safe. All stakeholders need to work together to provide safe/legal parking spots, unclog gridlocks, create smart traffic management systems, build EV charging stations, ensure better driving behavior, and reduce road accidents. I look forward to seeing the government expediting its initiatives to build smart cities of the future.”
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Aditya Singh, Founding Member and Head of Business, BosonQ Psi: “We expect continued focus policies in the EV sector that will foster research and development through strategic collaboration and start-up grants. This will not only go a long way in developing nascent technologies like quantum for simulation and vehicle design but propel the growth of the EV Industry ecosystem.”
Anirudh Ravi Narayanan, CEO, BNC Motors: “Overall, we are of the belief that it is time for the government to end the FAME subsidy for 2Ws and 3W. Only by ending subsidies will manufacturers be forced to improve their cost structure further and become globally competitive. Subsidies have provided support for the industry thus far and have helped in achieving a good level of adoption. However, it’s time for the crutches to come off and for the industry to start standing on its own feet. In addition, the removal of FAME will not have a major impact on the further adoption of EVs. We already saw this when FAME reduced from 40% to 15%, there was a dip in temporary sales but within 5 months the industry went back to monthly volumes in line with the pre-reduction. When the industry was able to withstand such a large drop in subsidy, it should be able to sustain another reduction from 15% to 0%.”
“However, one downside to removing FAME will be re-entry of China-made products in India. To counter this, we suggest increasing duties on any automotive parts that are available in India at sufficient capacity and technology level. For example, some manufacturers are still importing motors and electronics, where Indian companies have globally competitive products at sufficient capacity. Some are importing even basic items such as chassis and plastic parts which can be easily localized. Higher duties will help increase localization, doesn’t require budget allocation, and will help increase Govt revenues. We also would very much like to see the Govt follow through on the battery swapping policy which was announced in the Budget 2 years ago. This will have a tremendous positive impact on the EV industry.”
Brajendra Singh Tomar, CEO & Co-founder, Finayo: “As the Union Budget 2024-25 draws near, the electric vehicle (EV) industry in India is eagerly anticipating the rollout of policies aimed at propelling its growth and advancing the nation’s e-mobility objectives. We expect sustained backing in the form of demand-side incentives, including tax benefits for electric vehicle purchasers and an extension of subsidies under FAME-II. The establishment of a robust EV charging infrastructure is equally crucial, particularly in Tier II and Tier III cities. We call upon the government to allocate substantial funds for the development of charging facilities. Emphasizing open data standards and APIs for charging networks is imperative in the budget, as this would promote interoperability and foster a flourishing software ecosystem. This approach ensures seamless access for EV drivers to any charging station, irrespective of the provider. Moreover, we advocate for fiscal incentives, such as tax rebates, to support investments in research and development for software solutions facilitating advanced charging. This strategy aims to spur innovation in areas like smart grid integration, dynamic pricing, and demand forecasting, optimizing energy utilization and enhancing charging efficiency. By prioritizing these measures, the budget stands to significantly influence India’s EV revolution, facilitating a transition to a more environmentally sustainable future.”
Chetan Walunj, Founder & CEO, Repos Energy: “As we get ready for Budget 2024, all eyes are on two big areas: oil and gas and startups. While the Petroleum Ministry wants to keep the Rs 30,000 crore fund from the last budget to help oil companies go green, the Finance Ministry is thinking of cutting it with a concern about how much oil costs globally. Meanwhile, startups have some wishes for the budget, like simpler tax rules to help them grow, funds for new ideas, more money for building innovations and growth, and support for tech development. Getting the balance right between growing the economy and being sustainable in this budget will shape how India grows in the future, making sure it’s both strong and innovative.”
Hyder Khan, CEO, Godawari Electric Motors: “We eagerly await insights on FAME III, hoping for a well-defined roadmap and strategic planning support to ensure a seamless transition. Addressing these concerns in the upcoming budget is vital for the continued progress of our industry, fostering investor confidence and expediting the adoption of EVs as a practical and sustainable alternative. In addition, Government should consider bringing parity in tax structures between electric vehicles and hybrid vehicles from, Toyota and others Manufacturers. These vehicles play a crucial role given the current limitations in EV charging infrastructure. The substantial taxation on hybrids, creates an unfair competitive environment. I believe, despite the advantages EVs offer, the practicality of hybrid vehicles is quite evident in the Indian landscape.”
Kaustubh Dhonde, Founder & CEO, AutoNxt Automation: “As we navigate the dynamic landscape of the EV sector in 2024, we anticipate a strategic budget allocation that reflects our commitment to sustainable mobility. Our financial plan underscores not just numbers, but the human impact of driving innovation. With a focus on fostering talent, community engagement, and responsible growth, our budget embodies the essence of progress that goes beyond the balance sheet. Together, let’s power a future where humanity and technology coexist harmoniously, driving positive change in the world.”
Manas Arora, Co-founder & CFO, Alt Mobility: “As we eagerly anticipate the upcoming budget, we hope for a robust extension and fortification of support towards the FAME II scheme. Sustaining this initiative is pivotal for nurturing the flourishing Electric Vehicle ecosystem. The impetus on EV infrastructure growth, coupled with steadfast financial incentives, promises to catapult the expansion. For entities like ours, the budget is not merely financial; it’s a visionary blueprint shaping future strategies. In the insurance domain, our advocacy extends to a dedicated tax exemption covering a comprehensive range. Within the EV sector, the budget emerges as a potential catalyst for transformative change, ushering in a new era of sustainable mobility. “
Manish Rathi, Co-Founder and CEO, IntrCity SmartBus: “As the 2024 budget announcement approaches, we are focused on driving significant improvements in the private bus sector, which is projected to be the dominant mode of long-distance public travel in India. While the Government has done a remarkable job in the development of the highway networks across the country, this has set the stage for now creating a framework for development of essential public transport infrastructure, to help drive consumer adoption. The lack of convenient boarding infrastructure is one of the biggest roadblock in shifting travellers from private cars to public transport. Along the lines of airport development, we would request the Government to consider a budgetary framework for development of centralized bus terminals on national highways, which can be used as transit points for inter-city passenger movement. We believe that this can be a significant game changer for India, and has the potential to be the global leader in promoting adoption of public transport worldwide, where private cars tend to dominate the landscape.”
“Second, for historical reasons, passenger buses are not allowed to carry commercial cargo. This is a national waste, as modern vehicles have spare storage space and adequate engine capacity, which can be used to carry the cargo at marginal extra cost. Both the Railways and airline industry already do so. We request the Government to allow carrying of commercial cargo in passenger buses which will eliminate the wastages on unoccupied space, and also help reduce the cost to consumers.”
Narain Karthikeyan, Founder & Managing Director, DriveX: “As we anticipate the Interim Budget 2024-25, we recognize the pivotal role it plays in shaping the economic landscape, particularly for the two-wheeler auto industry. The potential benefits that could arise from individual taxation reforms hold promise for our industry. With the government’s focus on stimulating consumer spending, the possibility of tax incentives or reductions could significantly boost the demand for pre-owned two-wheelers.
Additionally, the recent announcement by the Reserve Bank of India (RBI) maintaining the current repo rate is noteworthy. The stability in the rates provides a favourable environment for financing options, making two-wheeler ownership more accessible to a broader consumer base. This aligns with our mission to enhance mobility solutions for individuals across diverse economic backgrounds.”
“Furthermore, we look forward to potential initiatives in the budget that encourage sustainable practices within the automotive industry. Our commitment to quality refurbished vehicles aligns seamlessly with the vision of a resilient and progressive two-wheeler auto industry. With an eye on the budget, we remain optimistic about collaborative measures that will propel our industry forward. Together with our dedicated team, strategic partners, and a customer-centric approach, we stand ready to embrace the evolving landscape and capitalize on the opportunities that the upcoming budget may unfold.”
Nimish Trivedi, CEO & Co-Founder, Evera: “Experiencing a surge in EV demand across the segments of hybrid cars, EV battery demand, development, and regulatory movement, the Indian EV industry will move towards its PLI-centred goals of becoming a self-sufficient supply mammoth for 2, 3, and 4-wheeler electric vehicles. The budget 2024 should continue the existing concessional rate of import duties on lithium-ion cells, to reduce the capex cost of purchasing an EV. Aligning with the government’s ₹18,000 crore production-linked incentive scheme for advanced chemistry cells, targeting a 50GWh capacity. Compounding on this, the second phase of the FAME policy, enabled an EV subsidy of 15% of its cost. The cost of EV made at par with ICE, rising consumer sustainability conscience, and an increasingly interconnected EV ecosystem, will continue to gain momentum in the interim budget 2024. Major automotive players are strategically investing in India’s electric vehicle market, with plans for production, substantial investments, and collaborations to establish a robust electric mobility ecosystem. This shall incentivize foreign OEM players to produce in the Indian market, positively raising competition for local manufacturers. The 2024 budget presents a strategic opportunity to pave the way for stakeholders to execute decade-end targets of 30% decarbonized mobility in the entire nation.”
Pragya Mittal, Co-Founder & Director, EVIFY: “The government at the center has a lot of focus on the growth of the EV Industry as a whole, but the same commitment needs to be showcased by the state governments as well. For example, in Gujarat, we are paying double RTO charges as compared to other states for the EV vehicles which makes it an expensive as well as a less preferred option. There should be standardised norms all across the states for equal opportunities of growth pan India.”
Rahul Goenka, Director, ElectroRide: “I eagerly anticipate the upcoming budget with optimism and a fervent hope for increased support towards the electric mobility sector. The extension and enhancement of the FAME (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme would be instrumental in propelling India towards a sustainable and eco-friendly future. Substantial subsidies for electric vehicles and related infrastructure would not only incentivize consumers but also bolster the growth of our industry. These measures will not only promote cleaner transportation but also stimulate innovation and job creation. I look forward to a budget that recognizes the pivotal role electric mobility plays in achieving environmental goals and economic development, and I trust that the government will continue to foster a conducive ecosystem for the electric vehicle industry to thrive.”
Pratik Kamdar, CEO & Co-Founder, Neuron Energy: “As the Union Budget 2024 approaches, we anticipate pivotal measures to propel the Electric Vehicle (EV) industry forward. We strongly support a positive change in the Goods and Services Tax (GST) rules, especially urging a lower tax rate for Electric Vehicles (EVs) and their parts. This adjustment won’t just make EVs more affordable but will also encourage more people to embrace electric transportation, aligning with our country’s goal of sustainable and eco-friendly travel. Furthermore, We hope the government extends and strengthens the support for the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME II) scheme. Keeping this scheme going is crucial for the continued growth of the Electric Vehicle (EV) ecosystem. In addition, we look forward to insights on the much-anticipated FAME III scheme. A well-defined roadmap in this regard would provide manufacturers with clarity, enabling strategic planning and fostering investor confidence. The seamless transition from FAME II to FAME III is essential for the industry’s progressive trajectory, and we hope the budget will provide a comprehensive vision for the future of electric mobility. With the rising pollution levels among the major cities in India, we need faster adoption and promotion of EVs as a sustainable alternative.”
Ravi Chandarana, Co-Founder & CEO, KwikFix Auto: “As we look forward to the upcoming budget, we envision a future where every vehicle on Indian roads is not just mobile but also safe and compliant. India is making remarkable strides in road infrastructure, exemplified by projects like Samrudhi, where roads are not only fenced but also elevated to significant heights. However, despite such advancements, accidents continue to occur, often due to inadequately maintained vehicles. India has a growing number of first-time car buyers who may have limited knowledge about vehicle maintenance. It’s crucial for the government to consider implementing mandatory vehicle fitness tests annually. This initiative can significantly enhance road safety by ensuring that vehicles meet stringent standards. We are dedicated to making vehicle maintenance accessible and convenient, and we believe that a mandatory fitness test aligns with the nation’s vision of safer and more reliable transportation. We look forward to budgetary support for measures that promote vehicle safety and compliance.”
Rajat Jaiswal, Co-Founder & CEO, Keydroid: “We at KeyDroid look forward to the Union Budget 2024, recognizing the relevance it holds amidst global uncertainties, inflation, and economic deceleration. As innovators in smart key upgrades, we seek comprehensive support across the automotive ecosystem, benefitting consumers, OEMs, and suppliers alike. Given the sector is witnessing a transformative shift in consumer expectations, rapid technology adoption, and evolving competitive dynamics, we advocate for budgetary measures that include skilling programs, fostering a qualified workforce to meet future demands. Also, as the EV segment is yet to reach maturity, we call upon the government’s attention towards prolonged clean mobility initiatives and schemes. Moreover, we hope for continued support and resources that streamline compliance, enhancing the ease, cost, and speed of doing business in the automotive sector.”
Samarth Kholkar, CEO and Co-Founder, BLive: “The anticipation is that the government will incorporate the Electric Vehicle (EV) sector into Priority Sector Lending (PSL), facilitating more accessible financing options for both personal and commercial electric vehicles. Additionally, there is a hopeful outlook for policy initiatives aimed at advancing EV adoption. This includes the extension of subsidies to enhance the affordability of electric vehicles and the implementation of incentives for conversion kits, encouraging the transformation of Internal Combustion Engine (ICE) vehicles into Electric Vehicles (EVs).”
Veer Singh, CEO, Lord’s Automotive: “As EV sales in the country are showing healthy growth, we expect the government to propose budgetary provision to extend the FAME II (Faster Adoption and Manufacturing Electric Vehicles) scheme with a view to support EV growth. The government policies and regulatory norms have so far been favourable for the automotive industry. In the interim budget, the government is expected to continue with the existing policy and regulatory framework.”
Arun Surendra, Group MD, VST Group: “In 2023, for the first time, India surpassed Japan in auto sales and became the 3rd largest auto market in the world. While the tier 1 cities have started to see a better adoption of EV vehicles, tier 2 and 3 cities are still challenged due to factors like power cuts, fluctuations in the voltage etc. Home charging for EVs is a challenge in multi-storey buildings, as often you have one allocated car park. The charging car parking spot is often a shared one limiting flexibility on usage. Unless multi-storey buildings invest in multiple charging points, quicker adaptability will be slow. We can expect a higher allocation in the forthcoming budget, with a lot more emphasis on the backend infrastructure such as tax breaks or subsidies into imports of critical components that go into the EV battery manufacturing, and in accelerating the building of the charging infrastructure. An extension of Faster Adoption and Manufacturing of Electric Vehicles (FAME-II) subsidies and tax deductions to incentivise the EV players in the industry like Tata, Kia and Mahindra will spearhead the acceleration and adoption of EVs in India.”
Gaurav Aggarwal, CEO and Founder, CarLelo, A Capri Loans Venture: “The landscape of online new car sales has experienced a substantial surge over the past 4-5 years, driven by an increasing preference for consumers buying cars digitally. We are expecting some key developments from the budget like a reduction in the GST rate that will support home-grown players in investing in newer technologies for enhanced mobility offerings on a global scale. Then, re-evaluation of the import structure for electric vehicles is also sought to address disparities in GST rates, providing a much-needed boost to the start-up community through government loans and investments. As an online new car market player, we are closely monitoring these developments, recognizing their potential impact on the electric vehicle market. Our commitment is to adapt our platform to the evolving landscape, ensuring that our customers have access to the latest and most sustainable automobile options. We look forward to the Union Budget introducing measures that not only support the growth of the electric vehicle industry but also contribute to a more sustainable and eco-friendly future.”
Shubhabrata Saha – MD & CEO, Ajax Engineering: “Post-COVID, the Government has done a remarkable job by generating unprecedented tailwinds through favourable policy support for infrastructure development across the country. The upcoming budget will be a vote on account, a provisional declaration estimating the funds needed by the Government before a new administration assumes office post-election. Govt has expressed confidence in achieving a fiscal deficit of 5.9 percent of GDP target for FY24. Post-elections, the time will be ripe to move beyond infrastructure, with a bold 25-year vision to forge self-reliance in Indian Construction Equipment Ecosystem. These policies must foster the growth of Indian companies, competitiveness against foreign onslaught, and sustainability of the profit pool in this sector.
“Tariffs on imported engineering goods to make them more expensive compared to locally produced items, like ones we have seen in the automotive industry, enable the indigenization of technologies and create a level playing, specifically regarding imports from China. Providing financial support or preference in govt business to local engineering businesses to enhance their competitiveness and promote innovation. Facilitate the transfer of technology and knowledge from more advanced industries or countries to local engineering businesses. Invest in education and skills development programs to ensure a highly skilled and competitive workforce in the Construction Equipment sector. Encourage the development of industrial clusters or special economic zones focused on the Construction Equipment Industry. Semi-urban & rural infrastructure-led initiatives must promote entrepreneurship and self-employment opportunities at the grassroots level in the country.”
Devndra Chawla, CEO & MD, GreenCell Mobility: “In anticipation for Budget 2024, we have focused on essential imperatives critical to the long-term development of India’s dynamic electric vehicle (EV) market. One significant recommendation is to secure permanent viability gap funding for financially pressured State Transport Units (STUs) and to develop credit guarantee systems to reduce lending risks. We emphasise the importance of an infrastructure sector tag for financing to electric mobility projects and propose a capital expenditure subsidy for private bus operators that deploy e-buses on intercity routes. Categorising e-mobility loans as Priority Sector Lending and introducing incentives for battery recycling are critical steps towards lowering interest rates and promoting sustainability. Standardising Green Energy Open Access Rules, toll exemptions for e-buses, and setting consistent prices for e-bus depots are critical to creating a suitable climate. Initiatives such as wayside charging infrastructure on national highways, specialised facilities at transport hubs and strategic highway adoption plans for pure e-bus operations demonstrate our commitment to sustainable mobility. Our entire plan includes opening up STU depots to private e-buses, easing freight transportation, and optimising charging costs through regulatory measures, all of which are consistent with our national commitment to environmentally friendly solutions.”
“We endorse the ongoing success of FAME subsidy, especially FAME 2, with a Rs 10,000 crore budget. As of December 21, 2023, it has subsidized around 12,16,380 autos for Rs 5,422 crore, highlighting its impactful contribution. The government’s commitment to boosting manufacturing and exports is evident through PLI Schemes for Automobiles, Auto Components, Advanced Chemistry Cell (ACC), and Battery Storage. To improve cost and sustainability, we strongly propose for a 5% GST on lithium-ion batteries, EV spare parts, and components. Standardising battery switching and tackling low-cost finance difficulties are critical for long-term growth. The government’s achievements in alternate fuels, renewable energy, and manufacturing through PLI programmes like as the Biofuel Policy and National Green Hydrogen Policy, with a potential investment of more than Rs 8 trillion, highlights the importance of these projects. As the demand for electric cars grows, significant coordination efforts are required to build e-mobility infrastructure, particularly charging stations. A strong infrastructure is essential for supporting the industry’s growth. GreenCell Mobility strongly welcomes Budget 2024, asking continued support and sensible initiatives to take the EV industry to unprecedented heights of success.”
