Finance minister has declared the much awaited annual budget today, with some very interesting implications
In general, budget 2023 is likely to favour the overall growth of Indian automotive industry. Here are a few ways in which it could influence or shape the automotive scene here.
The new budget has brought down customs duties on goods other than agriculture and textiles, from 21% to 13%. This would translate to slashes in CESS and SUR charges - meaning possible price drops for cars and SUVs this year.
The government has increased import duties by 10%. Vehicle models brought via CBU will now have a 70% import tax slab. (engine capacity of up to 3000cc in petrol and 2500cc in diesel).
Import duties have been raised to 70% on CBU electric vehicles as well. Many high-end luxury and sports EVs will be affected.
The new budget favours EV manufacturers and associated businesses. Capital goods and machinery for Li-io battery manufacturing have now been exempted from custom duties. This could lower the EV prices in the future. More focus will be placed on EV-infra development as well.
Ample support funds have been allocated for effective scrappage and replacements of old government vehicles - many units of Gypsy, Quallis, Ambassador, etc will face the axe now. The same could apply to the ambulances as well.
Government has raised the rebate limit on personal income tax to 7 lakh/annum. This would make it easier for salaried customers to buy vehicles
The new budget has allotted Rs.2.7 lakh crores for 2023-2024. MoRTH (The Ministry of Road Transport and Highways) recieves Rs. 2.7 lakh crores for roads, highways and infrastructure during this financial year
However it remains to be seen as how the budget will affect the fuel prices.