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Business News/ Budget / News/  Union Budget 2022: How the automotive world responded
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Union Budget 2022: How the automotive world responded

PM Gati Shakti project is a revolutionary project that will take India’s logistics, infrastructure, sustainability, and green mobility initiatives forward

Union Finance Minister Nirmala Sitharaman along with the Minister of State for Finance Bhagwat Karad arrives at Parliament ahead of the Union Budget 2022-23 presentation in the Lok Sabha, in New Delhi. (Amlan Paliwal)Premium
Union Finance Minister Nirmala Sitharaman along with the Minister of State for Finance Bhagwat Karad arrives at Parliament ahead of the Union Budget 2022-23 presentation in the Lok Sabha, in New Delhi. (Amlan Paliwal)

Martin Schwenk, MD and CEO, Mercedes-Benz India

This Budget is overall growth oriented with a clear focus on digitization, electrification, infrastructure development and ease of doing business; aiming to propel a long-term growth of the Indian economy.

The battery-swapping announcement is in the right direction and will be helpful to a limited segment. We however need a broader holistic view on the strategy around developing electric mobility for the passenger vehicle segment.

A mid-to long term planning for demand creation is needed and we hope the fine prints will have ripple effect and passively stimulate growth for the auto industry.

P B Balaji, Group CFO, Tata Motors

Budget 2022 is an articulation of purposeful intent enabled by a clear action plan. Building on the excellent budget of last year, the government has wisely continued on the path of prioritizing economic growth with calibrated fiscal prudence. For the Indian automobile sector, which is a significant contributor to the nation’s GDP, the budget offers continuity and also additional opportunities to drive multi-year growth.

Specifically, the robust increase in capex by 35.4% to Rs. 7.5 lakh crore and a comprehensive investment plan for infrastructure is a significant growth booster.

Additionally, the launch of the well-conceived PM Gati Shakti program for multi modal transport including 100 cargo terminals and investments in 25000Kms of highways, apart from investments in ports and metros is an excellent development that will help create a world class transport infrastructure in the country.

This will reduce logistics costs and transit times, increase employment and make us globally competitive with avenues for better and efficient mobility solutions. Additionally, plans to create EV charging infrastructure including national policy for battery swapping which when combined with the already announced Automotive PLI scheme, furthers the agenda for green mobility.

Tata Motors welcomes this balanced, thought through budget.

Venkatram Mamillapalle, Country CEO and MD, Renault India

We welcome the Union Budget 2022, which spells seamless growth for the Auto & Auto Ancillary industry in India. The government’s focus on ‘Aatmanirbharta’ will continue to provide impetus to build domestic capacities and push the agenda of ‘Vocal for Local’. 

The government’s focus on Battery Swapping policy to be brought with inter-operability standards and push for clean tech and electric vehicles will create the right ambient environment for EV introduction and overall harmonisation of the electric mobility aspiration of the nation. This move will prove to a giant leap for the nation in advocating introduction of cleaner propulsion technologies and will improve air quality and reduce consumption of conventional fossil fuels.

The government has laid emphasis for the development of the infrastructure within the country that will further help build capacities for the resurgence of the automotive sector in India and envisages 20K Crore investment outlay in infrastructure projects, under the auspices of PM Gati Shakti that focuses on 7 engines of growth, including building the road transport network in the country. 

The National Highways network will be expanded by 25,000 km in 2022-23. Better roads will have a certain positive impact on the automotive sector.

 Finally, the government’s decision of strengthening the rural economy through a MSP payment of 2.73 lakh crore along with other benefits with an objective of aiding the farming sector, will help increase the disposable income, improving the sentiment in rural areas and further improving the demand & aspirations of rural and semi-urban markets of India for personal mobility.

Venu Srinivasan, Chairman, TVS Motor Company

Union Budget 2022 sets the pace for the Indian Economy’s growth trajectory amidst the challenges brought forth by the pandemic. The big boost to capital expenditure is welcome and it would give a fillip to the Indian economy.

For the automobile sector, we welcome the ‘PM Gati Shakti Master Plan’ focusing on building world-class infrastructure and improved connectivity for commuters. The strong push towards augmenting agricultural productivity should help enable buoyant rural demand. In the electric mobility space, we strongly support the measures undertaken by Government to promote clean and green mobility, mainly introducing the battery-swapping policy will be instrumental in supporting an efficient EV ecosystem.

There is an impactful thrust towards renewable energy incentives with an increased focus on reducing infrastructural waste for a greener tomorrow. We appreciate the Government’s vision of building the skilling ecosystem for youth in India, which will play a critical role in driving innovation in the industry.

Diego Graffi, Chairman and MD Piaggio Vehicles Pvt. Ltd

We welcome the union budget for the year 2022-23. This is a good budget for the promotion of green mobility. The PM Gati Shakti project is a revolutionary project that will take India’s logistics, infrastructure, sustainability, and green mobility initiatives forward, as this focuses on multi-modal logistic parks and Unified Logistics Interface Platforms, we believe that it will help in reconciling supply chain constrains and make them more robust. 

Considering, the battery swapping policy one of the initiatives in the Budget for the auto industry, we feel the policy as being a sincere advocate of EVs as last mile mobility solutions. Larger battery swapping infrastructure will help enhance EV infrastructure and should propel adoption of EVs. 

We are glad that government is encouraging to create sustainable and innovative business models for battery and energy as a service, improving the efficiency in the EV ecosystem. This will also generate employment opportunities as planned by the government under the Make In India initiative.

Vinod Aggarwal, MD & CEO, VECV

We welcome the long-term focus in the budget on infrastructure & logistics development and modern vehicle technologies.

The Commercial Vehicle industry will benefit as trucks will play a key role in infrastructure development proposed under the PM Gati Shakti Plan, construction of highway network and other infrastructure projects. This in-turn will pave the way for modern trucks and buses to operate efficiently on Indian roads. Initiatives in the budget that strengthen the rural economy will further improve vehicle buying sentiment for a diverse range of passenger and commercial vehicles. EV battery standardization and the formulation of new interoperability standards will facilitate development of the EV ecosystem -particularly in the two-wheeler and last-mile delivery segments.

Overall, the Union Budget 2022 promotes digitisation and technological advancement, encourages sustainable development, and puts India on the path of progressive development.

Dheeraj Hinduja, Executive Chairman, Ashok Leyland Limited

The Finance Minister has presented a growth-oriented and pro-development Budget for 2022-23 by focusing on sustainable planning & development, energy transition for a cleaner tomorrow and inclusive growth through a tech-enabled economy. Also, investment led growth strategy and the sizeable capital investment for sustained and speedy economic revival are reflected in the sharp increase in capital expenditure for FY23. The special focus on education, digital and clean mobility is laudable.

The Battery Swapping policy and special EV mobility zones will help in the smooth transition to electric vehicles. The budget has laid the roadmap for long-term development over the next 25 years and areas like artificial intelligence, drones, semiconductors, space economy, genomics, green energy, and clean mobility systems will collectively lead the future growth of the economy. This budget echoes our sentiment and commitment to indigenous mobility solutions for a cleaner tomorrow.

Pawan Munjal, Chairman and CEO, Hero MotoCorp

It was heartening to see the Honorable Finance Minister lay down Gati-Shakti and Inclusive development; the key tenets of Budget 2022 as she presented a blueprint for Amrit Kaal, which she termed futuristic and inclusive.

I applaud the finance minister for using the Union Budget as a launch-pad to share the blueprint for India’s economic trajectory over the next 25 years.

Overall, the budget is well balanced and conscious to the needs of all segments of the economy, while staying true to the long-term goal of nation building. The resurgent Budget has put the country firmly on path for its $5-trillion target, while showing the roadmap towards India’s dominant role in a new post-pandemic world.

One of the landmark announcements of this Budget is the battery swapping policy, which has the potential to be a game-changer in catalysing the migration to EVs. While the scale of its impact will be clear upon formation of the policy, the industry is committed to sharing its insights and expertise with the Government to make this a reality.

I am personally delighted with this move by the Government as it resonates with our Company’s and my own commitment to the cause of Sustainability.

The renewed focus on sustainability through natural and organic farming, PLI on green energy and the creation of funds will further India’s efforts to meet climate-change goals for a sustainable future.

The continued focus on infrastructure will not only improve the quality of lives and generate jobs but will also help Indian industry become globally competitive.

The Budget provisions are consistent with the Government’s clearly spelt out priorities of Make in India and Atma Nirbhar Bharat. The Government has sharpened its focus to boost domestic manufacturing across sectors, particularly the Defence sector. Addressing the concerns of the MSME sector, the ECLGS Scheme has been extended and expanded to include sectors such as Hospitality that have been hit hard by the pandemic.

This is a welcome move that will help credit growth for NBFCs as well as enable recovery of existing exposure from this sector. It would also help the government to revive sentiments as business recovers.

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Updated: 01 Feb 2022, 08:19 PM IST
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