Automobile sector seeks further subsidy and incentive support from government

The automotive industry has high expectations for the Union Budget 2024–2025, believing it would include regulatory measures and improve incentives to support the nation's electric vehicle (EV) ecosystem.

The government is expected by businesses to unveil plans to improve the nation's manufacturing and charging infrastructure.

"EVs have done very well on the market, and appropriate regulatory and incentive measures should be introduced to further strengthen the ecosystem. Additionally, the GST slabs should be adjusted such that the initial purchaser of a 100cc car falls under the 18% slab, according to Indore-based auto dealer Vishal Pamnani. 

Reportedly, automotive dealer’s representatives are looking for a smooth administrative functioning by reducing paperwork which will streamline and improve the financing process.

A budget announcement from the government on the Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME) 3 initiative is also anticipated by industry participants. According to them, in order to encourage owners to get rid of their older cars, the scrapping policy has to be reinforced further by offering better incentives for doing so.

Industry participants anticipate that the government will expand the scope of the Production Linked Scheme (PLI). 

"The industry will receive a much-needed boost if the Production Linked Scheme is expanded to include tyre producers. Policy reforms are necessary to address the cost of advancement in industries, which has increased due to new technologies,” citing an industry leader from Pithampur's tyre manufacturing sector, Times Of India Reported.