Listing the possible impacts of Interim Budget 2024 on automotive industry…
With the elections being little of a secret, India has had its Interim budget declared. Unsurprisingly, this budget doesn’t have much in declarations. There’s no announcement that’s ‘huge enough’ to unsettle the space or in turn lure the public interest. However, Budget 2024 hints at how the automotive space would likely evolve and where the winds could take it. Here’s everything we know of and/or assume about the impact of 2024 Interim budget on automotive industry in India…
Interim Budget 2024 Highlights:
Positive Winds For EVs
The Budget has clear positive notes for EVs. EV adoption, electric vehicle manufacturing, and infrastructure development will all benefit in the upcoming months. It hints at favorable policies for EV manufacturers, and infrastructure startups.
EV charging sector is currently in a rapid growth phase, and the same is expected to get further boosts. More businesses, investment, and employment are expected in this sector.
The new policies also favor local manufacturing of Lithium batteries that form the heart of most modern EVs.
FAME Scheme Revised!
The Finance Minister did not announce any extension of the FAME-II or FAME-III schemes in India. Instead, the allocations for these were reduced by a massive 55.58%!
Bigger PLI Schemes For Auto Industry
The budget has allocated sizeable PLI (Production-Linked Incentive) schemes for the automotive industry, which could, in the long run, benefit EV manufacturers as well.
PLI schemes for advanced chemistry cells and batteries have been raised to 250 crores, from a much smaller 12 crores. This will accelerate the development and manufacturing of advanced batteries and battery tech for EVs, within the country.
Further, the Ministry of Heavy Industries has extended the PLI scheme tenures for automobiles and auto components by one year.
ALSO READ: Budget 2024 Expectations And Wishlists From The Automotive Industry
Electrifying Public Transport Networks
The government will work towards adopting more electric vehicles in the public transport sector. More electric buses will be inducted into the public transport networks. Rs 1300 crores have been proposed for this.
Over 10,000 electric buses will be procured for 169 cities, under the PM-eBus Sewa scheme, through public-private partnerships. The Rs 57,613 crore outlay scheme will be live until 2037. Further facilitating electric bus transportation, effective payment security systems will also be introduced.
More Focus On Sustainability
The budget has made a key announcement for natural gas users. It will be made mandatory to blend compressed biogas into CNG for transport and piped natural gas. This apparently, comes in as part of the vision for cleaner emissions in the time ahead…
Stronger Focus On Urban Transportation
The pre-election budget proposes Rs 24,931 crore for various metros. Indian government plans to strengthen urban transportation networks, building on metro rail and NaMo Bharat trains.
No Change Announced On Taxes And Fuel Prices
The Interim budget conveniently stays clear of any announcements around a change in taxes and duties on automotive purchases or fuel prices in general. We could, however, expect major announcements in the upcoming Union Budget, post-elections.
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