BackBudget 2023: What auto sector leaders said on new announcements
The finance minister has reiterated the government’s focus on green mobility by emphasizing on the recently launched National Green Hydrogen Mission. She said that with an outlay of ₹19,700 crores, the National Green Hydrogen Mission will “facilitate transition of the economy to low carbon intensity, reduce dependence on fossil fuel imports, and make the country assume technology and market leadership in this sunrise sector”.
PremiumUnion Finance Minister Nirmala Sitharaman presented the Union Budget 2023 in the parliament on February 01, 2023. The minister made some crucial announcements on the EV segment such as exemption on Customs duty on lithium-ion batteries and more.
The finance minister has reiterated the government’s focus on green mobility by emphasizing on the recently launched National Green Hydrogen Mission. She said that with an outlay of ₹19,700 crores, the National Green Hydrogen Mission will “facilitate transition of the economy to low carbon intensity, reduce dependence on fossil fuel imports, and make the country assume technology and market leadership in this sunrise sector". “Our target is to reach an annual production of 5 MMT by 2030," she added.
Here is how leaders from the automobile segment respond to the Budget 2023.
According to Pankaj Sharma, Co-Founder and Director, Log9 Materials, the proposed customs duty exemptions on the import of capital goods and machinery required for the manufacturing of lithium-ion batteries bring in a new lease of life for all battery manufacturers as it would help accelerate the country’s production capacity and also gives the much-needed momentum to the country’s vision to become self-sufficient in its EV needs.
Ramkrishna Forgings CFO and Executive Director Lalit Khetan stated, “I can confidently say that the overall budget for the auto sector stands well managed and good. There have been several initiatives by the government to utilise a portion of their funds on the scrappage policy. Now, the main challenge that lies ahead is to successfully implement the policy on a large scale, which will directly depend on the involvement of the public at large. If the people take active initiative regarding the same, the sector should see significant progress in the coming days.
Rahul Dhoot, Managing Director, Dhoot Transmission Pvt Ltd believes that the automobile industry, which contributes a sizable chunk to the country’s GDP, has been given a futuristic thrust.
“The government’s focus on green and clean mobility, allocation of funds for replacing government vehicles will go a long way in transforming the automobile industry. The lifting of duty on lithium-ion batteries and the decision to scrap old polluting vehicles bodes immense growth for automobile manufacturers and will give a fillip to the electric vehicles industry which in turn will invigorate the components industry," says Dhoot.
Speaking on the EV and green mobility sector, Banwari Lal Sharma, CEO, Consumer Business, CarTrade Tech Ltd. expressed that the Union Budget 2023-2024 announced by Finance Minister Nirmala Sitharaman is progressive, prudent and growth-led, with an eye to provide impetus on the savings of the public.
“It is a 'green budget' for the automotive and mobility sectors. The sustainability measures taken through announcements on green hydrogen and other energy sectors will help in furthering the government’s target of carbon neutrality by 2070. The increased Capex outlay on energy transition is likely to spur investments and skill development in a green economy," says Sharma.
As per Sharma, the viability gap funding for battery energy storage systems is also likely to create critical infrastructure, while custom duty reduction on capital goods for Lithium batteries manufacturing will facilitate faster adoption of EVs.
“Increase in spending on infrastructure, setting up of 50 new airports and heliports, creation of 100 transport infrastructure projects are welcome moves, in addition to the central support for replacing old vehicles. All of these should drive consumption and overall demand of vehicles," added Sharma.
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