How Automobile Industry Sees Budget 2024: Check Reactions

Automobile Industry On Budget 2024: Union Finance Minister Nirmala Sitharaman presented Union Budget for the financial Year 2024-25, underlining the Modi 3.0 government's top priorities.

Automobile Industry Reactions On Union Budget 2024: Union Finance Minister Nirmala Sitharaman presented Union Budget for the financial Year 2024-25, underlining the Modi 3.0 government's top priorities. Despite no big direct announcement for the automobile sector, here is how the industry reacted to the Union Budget 2024.

Vinod Aggarwal, SIAM President

“The Indian Automobile Industry welcomes the continued emphasis on economic growth with several announcements especially the strong fiscal support for infrastructure in the next 5 years. The announcements such as liberal allocation for rural development & infrastructure of Rs 2.66 Lakh crores is a welcome step that will boost the rural economy.

SIAM also welcomes several proposals in the budget such as: 

-- Measures for skilling and upskilling and support to manufacturing and employment generation.
-- Support to MSMEs, many of whom form the large supplier base for the Auto sector.

-- Exemption of Customs Duty on import of Lithium, Cobalt and other rare minerals and extension of concessional Customs Duty on Li-Ion Cells till March 2026; and

-- Withdrawal of Equalization Levy of 2% on e-transactions.

These announcements would continue to propel growth of the Indian Auto Industry.”

Manish Raj Singhania, FADA President

"The recent budget announcement by the Government of India brings a blend of optimism and challenges for the auto retail sector. The enhanced Minimum Support Prices for major crops and the launch of Phase IV of PMGSY are positive steps that will boost rural incomes and improve rural connectivity, thereby potentially increasing rural auto sales.

The budget's emphasis on employment, skilling, MSMEs, and the middle class is particularly relevant for our industry. The Employment Linked Incentive scheme and the enhancement of Mudra loans are encouraging developments that will support job creation and entrepreneurship, leading to increased consumer spending power.

Significant infrastructure investments, with an allocation of Rs. 11,11,111 crore for capital expenditure, will have a multiplier effect on the economy. Improved infrastructure is a boon for the auto sector, facilitating better logistics and enhancing the overall consumer experience.

The adjustments in personal income tax, including increased standard deductions and relief for salaried employees and pensioners, are welcome measures that will enhance disposable incomes, fostering a more favorable environment for auto sales."

Santosh Iyer, MD & CEO, Mercedes-Benz India

“The budget clearly underlines Govt’s priorities on creating a robust foundation for a developed Indian economy. We are glad the capex on infra projects tops govt’s priority, with 3.4% GDP allocation. We were expecting GST announcement of long-term continuation of reduced GST for BEVs; however, developing a climate finance taxonomy to aid capital for climate adaptation and mitigating climate change, is a step in the right direction for achieving climate commitments.”

Pawan Munjal, Executive Chairman, Hero MotoCorp

“The Budget 2024 is a visionary and pragmatic blueprint designed to propel our economy forward and foster a sustainable future. I am confident that this budget presented by FM Nirmala Sitharaman will stimulate consumption, attract substantial investments, and stabilize inflation. This budget successfully addresses the dual imperatives of economic growth and fiscal responsibility. 

The Government of India has undertaken exemplary initiatives to fuel the next generation of economic reforms. With an optimistic growth forecast of 7% for the fiscal year 2024-25, this budget reflects the significant progress our nation has made across various sectors. 

Budget 2024 positions India as a technology-driven and knowledge-driven economy, reaffirming our commitment to sustainable development. It is a decisive step towards realizing our national aspirations and strengthening our position on the global stage.”