Accelerating Sustainable Mobility: Auto Sector's Expectations for India's Budget 2025
Key Ideas
  • Auto industry in India expects policy changes, tax reforms, and infrastructure investments in Budget 2025 to promote cleaner and sustainable mobility.
  • Key expectations include reforming GST for EV components, expanding PLI scheme, and supporting research in technologies like solid-state batteries and hydrogen fuel cells.
  • Calls for uniform GST rates across EVs, batteries, and charging services, incentives for domestic battery manufacturing, and continued support for PLI and FAME schemes.
  • Focus on sustainability in logistics with policies promoting green technologies, electric vehicle integration, alternative fuel sources, and workforce development programs.
As India's Finance Minister prepares to present the Union Budget 2025, the country's auto industry is eagerly anticipating policy changes and investments to accelerate the shift towards cleaner and more sustainable mobility. Stakeholders in the sector have outlined key expectations: Vaibhav Kaushik from Nawgati emphasizes the need for technology-led interventions to address air pollution and road congestion. CEOs like Nilesh Bajaj and Chandrasekar Krishnamurthy raise concerns about the existing tax structures and call for reforms to support electric vehicles (EVs) and incentivize domestic manufacturing. Nikhil Agarwal and Maxson Lewis stress the importance of policies that encourage sustainability in logistics, including promoting green technologies and enhancing infrastructure. Ayush Lohia highlights the necessity of strengthening domestic battery production capabilities through favorable policies and reduced taxation disparities. Suyash Gupta advocates for Auto LPG as a sustainable fuel alternative, urging tax reforms and investments in infrastructure to foster greater adoption. The sentiment across the industry is positive, with a shared belief that well-structured policies and investments in Budget 2025 can drive the transition to sustainable transportation and address pressing environmental and energy security issues.
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