Budget 2024: Auto companies seek continued push to green mobility, infra development
The luxury car industry has a significant value contribution to the GDP, and the segment aspires for a rationalised duty structure and GST on priority.
The government needs to continue with favourable policies to promote green mobility while also focusing on infrastructure development at a robust pace in the upcoming Budget, according to some leading firms in the automobile space.
The Union government is all set to present the Interim Budget on February 1.
"We expect capex on infrastructural projects to continue aiding the automotive sector. The policy push for green mobility should remain a key focus for the government, encouraging faster adoption of electric vehicles," Mercedes-Benz India MD and CEO Santosh Iyer said.
The luxury car industry has a significant value contribution to the GDP, and the segment aspires for a rationalised duty structure and GST on priority, he added.
"Overall, we expect consistency in various policies and no surprises in the upcoming Budget," Iyer stated.
Luxury vehicles currently attract the top GST slab of 28% with an additional cess of 20% on sedans and 22% on SUVs, taking the total tax incidence to up to 50%.
Toyota Kirloskar Motor Deputy Managing Director (Corporate Planning, Finance and Administration and Manufacturing) Swapnesh R Maru said the automaker remains confident that the government will continue its push towards shifting the economy and transportation sector to a greener future that is less dependent on fossil fuels.
"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 the growth of the manufacturing and service sector," he added.
JK Tyre and Industries Chairman and Managing Director Raghupati Singhania said that consistent automotive policies would propel sectoral expansion. "A robust Budget is vital for India's journey to become the third-largest global economy," he noted.
Mahindra Last Mile Mobility MD and CEO Suman Mishra said that by driving inclusive income generation, electric three-wheelers and commercial vehicles pave the way for the financial upliftment of many.
"We call upon the Union Budget 2024 to prioritise this segment through continued FAME support, fostering economic empowerment for the most deserving and environmental well-being for all," she noted.
Kinetic Green Founder and CEO Sulajja Firodia Motwani expressed optimism 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 for a period of five years from April 1, 2019, with a total budgetary support of Rs 10,000 crore. It is set to expire on March 31, 2024.
Group CFO Mayank Gupta hoped that the government would look into GST anomalies in self-drive cars.
"The government can consider addressing GST anomalies in self-drive cars, contemplating a personal tax rate cap of 30% through surcharge reductions, and extending long-term capital gains benefits to employee stock ownership plans (ESOP)".
Edited by Suman Singh