Budget 2024: Will Electric Vehicles Become Cheaper? Big Demands From Auto Sector

Budget 2024 Expectations: The Indian Government is set to present the budget for the financial year 2024-25.

Auto Sector Expectations From Budget 2024: The Indian Government is set to present the budget for the financial year 2024-25. The entire nation is keenly awaiting its announcement, with various sectors holding specific expectations. The automobile industry, particularly the electric vehicle (EV) sector, is looking forward to significant measures and support in the upcoming budget.

Jyoti Malhotra, Managing Director, Volvo Car India

“Given the increasing demand in the mobility sector, the Union Budget will hopefully set a road map for a faster adoption of EVs both for personal and commercial transportations. Indian economy has been moving towards new and sustainable technology products and we anticipate that the budget will outline a policy framework for sustainable development. Volvo Cars will provide the required sustainable impetus to the personal mobility sector through our global best technology offerings for the Indian market. As such we anticipate that the budget will encourage introduction of advanced sustainable technologies most suited to the fast growing Indian market.”

Manish Raj Singhania, FADA President

"We urge the Finance Ministry to introduce the benefits of claiming depreciation on vehicles for individuals paying income tax. Allowing individuals to account for depreciation will not only increase the number of income tax filers but also ignite automobile demand.

We request for the reduction of corporate tax for LLPs, proprietary, and partnership firms. While the Government has already reduced corporate tax to 25% for private limited companies with a turnover of up to Rs. 400 crores, extending this benefit to all LLPs, proprietary and partnership firms is crucial, as most traders within the auto dealership community fall into these categories."

Niraj Rajmohan, CTO and Co-Founder, Ultraviolette

"In the upcoming budget,  we advocate for initiatives and subsidy structures without segment caps which will in turn foster innovation and growth across multiple segments.  Recent discussions surrounding the implementation of FAME 3 present a notable opportunity to enhance EV adoption in India. In light of this, any extension of the FAME subsidy and removing all caps on the ex-factory price of EVs will be pivotal in enhancing the position of tech forward companies.

Additionally, as we prepare to export our vehicles to first world countries, we hope for benefits associated with the 'Make in India' initiative that will help spur exports and push up the technology benchmark of the local electric vehicle ecosystem. We eagerly anticipate favorable developments that align with our vision for technological advancements, sustainability, and global market expansion.”

Kartikey Hariyani, Founder and CEO, CHARGE ZONE

"As we eagerly anticipate Union Budget 2024-25, comprehensive support for the entire EV ecosystem is essential. Anticipated policy reforms like FAME-III and increased funding for critical EV segments will foster holistic industry growth.

Clarity on key enablers such as streamlined licensing norms, regulatory standardization, and reduced taxes will unlock the sector's full potential. Enhanced subsidies and incentives for EV manufacturers and consumers, expanded tax credits, and reduced tariffs on EV components will drive adoption and investment."