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Auto Industry captains share their view on Interim Budget 2024 – Express Mobility News

The automotive industry by far is amongst one of the largest job creators and contributors to the economy. The Indian auto industry currently pegged as the fourth largest globally, is expected to surpass Japan to become the third largest in the coming years. It comes as no surprise that the industry was closely following the Interim Budget 2024, and here is what they think.

Brajendra Singh Tomar, Co-founder & CEO, Finayo: “Today’s interim budget shows strong support for sustainable planning, energy transition to a cleaner future, and overall development. The government’s commitment to bolstering the electric vehicle industry and bio-manufacturing is clear. Finance Minister Sitharaman’s introduction of zero carbon credits and tax breaks for entrepreneurs demonstrates a strong commitment to building a green and sustainable economy. The fund of funds, Startup India, and Startup Credit Guarantee Schemes are aiding our youth by providing critical financial support and guarantees to promote the creation of new and innovative enterprises. Furthermore, there is a strong emphasis on extending the e-vehicle ecosystem by improving manufacturing and charging facilities. The development of a new bio-manufacturing plan aimed at promoting biodegradable products demonstrates a desire to shift manufacturing usage towards a more environmentally friendly approach. This program supports global efforts to improve sustainable transportation and reduce carbon emissions. The government’s attention on EVs and investment in charging infrastructure demonstrates its commitment to promoting their wider adoption. Collaboration among governments, car manufacturers, and charging station providers is regarded as critical for building a fully operational and sustainable electric vehicle culture. Furthermore, the government’s desire to increase EV sales while revising vehicle pollution rules demonstrates its strong commitment to the EV sector.”

FR Singhvi, President, ASDC: “In a significant stride towards enhancing the EV ecosystem and fostering environmentally friendly growth, the government has revealed plans to expand and fortify the manufacturing and charging infrastructure for EVs. The announcement was made by Finance Minister Nirmala Sitharaman during the presentation of the Interim Budget in the Lok Sabha on Thursday. The comprehensive approach outlined in the interim budget towards the automotive sector aligns with the government’s objectives of promoting ‘Atmanirbhar Bharat’ (self-reliant India) and moving decisively towards achieving net-zero carbon emissions by 2070. Moreover, this strategic move is expected to generate employment opportunities for semi-skilled labour in the installation and maintenance of EV charging stations.”

Harsha Kadam, MD & CEO, Schaeffler India: “As we assess Budget 2024, the government’s commitment to sustainable mobility stands out. The focus on bolstering the electric vehicle (EV) ecosystem, supporting manufacturing, and expanding charging infrastructure aligns with Schaeffler’s vision for a greener future. The proposal to boost the EV market with payment security mechanisms not only promotes environmental awareness but also provides a thrust to the manufacturing sector. The acknowledgement of biomanufacturing and bio-foundry is commendable, aligning with global green initiatives and fostering innovation within manufacturing. Schaeffler India, a leading motion technology company, looks forward to contributing to this transformative journey towards a sustainable manufacturing landscape. The increased outlay for infrastructure development is promising. Economic rail routes and efforts to reduce logistics costs will enhance efficiency, benefiting companies in the automotive supply chain. In summary, Budget 2024 lays a robust foundation for a future where sustainability and manufacturing coexist. Schaeffler India is poised to play a pivotal role in driving this vision, contributing to the nation’s progress towards a Viksit Bharat by 2047.”

Lalit Kumar Khetan, Whole-Time Director & CFO, Ramkrishna Forgings: “This budget will continue to play a crucial role in promoting the development of the automotive sector. In the year 2023, the automobile industry crossed the milestone of 4 million passenger vehicle sales. The commercial vehicle (CV), two-wheeler, and three-wheeler segments also witnessed double-digit growth, which is expected to enhance after this budget. I believe that the budget’s emphasis on supporting charging infrastructure for electric vehicles is crucial for accelerating the adoption of EVs in India. The establishment of a dedicated Payment Security Mechanism tailored for EV buses also addresses a critical need in the sector, fostering investor confidence and facilitating the expansion of electric public transportation. I believe the budget’s focus on enhancing infrastructure, promoting sustainable transportation solutions, and fostering entrepreneurship bodes well for the growth and development of both the EV and railway sectors in India.”

Mayank Gupta, CFO, CarDekho Group: “We applaud the Government’s strategic focus on bolstering the EV ecosystem, underscoring a commitment to sustainable mobility. The emphasis on manufacturing and charging infrastructure, coupled with the pursuit of bilateral treaties under the ‘First Develop India’ ethos, reflects a progressive proactive approach. Despite being an interim budget, the Finance Minister emphasised the commitment to expanding and fortifying the Electric Vehicle (EV) ecosystem, setting a crucial path towards a greener and more resilient future that aligns economic growth with environmental responsibility.”

Niranjan Kirloskar, Managing Director, Fleetguard Filters: “The Finance Minister proposed a well-crafted budget that balances growth and social development. The focus on infrastructure development, with the Interim Budget 2024 proposing to raise capital expenditure—for the fourth consecutive year— by 11.1% to Rs 11.11 lakh crore, which is 3.4% of the GDP, presents a significant opportunity for the auto and construction industry. The impetus on Research and Innovation for catalysing growth, employment, and development is a welcome move for a Viksit Bharat. With reforms supporting the adoption of sustainable mobility and skill development, India is poised to become a global leader in automotive technology.”

Rohit Saboo, President & CEO, National Engineering Industries: “The Interim Budget highlights the government’s intent to continue its focus on inclusive and sustainable development. The government stands committed with a special emphasis on empowering the poor, women, youth, and farmers and is focused on driving policies that resonate with their aspirations. Additionally, the commitment towards expanding the e-vehicle ecosystem brings an exciting prospect for the youth, which will create employment opportunities that align with the demands of the future. The introduction of biomanufacturing and bio-foundry schemes is also a welcome move that will be a great alternative to bio-degradable production.

Ruchit Agarwal, Co-Founder & CFO, CARS24: “We strongly commend the government’s focus on strengthening the EV ecosystem through manufacturing and charging infrastructure initiatives. This will undoubtedly be a significant boost to India’s sustainable transportation goals. However, alongside this positive development, we also urge the government to consider the broader needs of the startup ecosystem. Many Indian startups, for various reasons, incorporate outside the country. While these startups contribute significantly to the global economy, many also aspire to return to India and contribute to their home nation’s progress. We believe that introducing clear and supportive policies for returning startups, including tax breaks or relaxed regulations, would be a powerful incentive. This would attract valuable talent, innovation, and investment back to India, fostering a vibrant domestic startup ecosystem. Ultimately, such measures would benefit not only returning startups but also the Indian economy as a whole.”

Venkatesh Raman Prasad, Partner, JSA Advocates and Solicitors: “With the interim budget announcements, the overall outlook of the Government towards EV sector looks positive. The Government has pledged support for expansion and strengthening of EV manufacturing and charging infrastructure. Accordingly, the industry may expect continuity of incentives and formulation of new policies to drive growth in the sector. The Interim Budget also addresses adoption of e-buses for public transport networks through payment security mechanism. The details of the PSM mechanism will be awaited by the sector as this would largely support the rollout of e-buses in India.”

This article was originally published by a www.financialexpress.com . Read the Original article here. .

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