Budget 2024: Prominent automotive companies underscore the need for budgetary policies that support green mobility and infrastructure development. It is essential to keep supporting programs for environmentally friendly transport and to build infrastructure more quickly. The revolutionary possibilities of electric three-wheelers and commercial vehicles are emphasized by Mahindra Last Mile Mobility.

In the next budget, major automakers emphasized the significance of supportive measures for encouraging green mobility and strong infrastructure development. There is a strong appeal for both accelerated infrastructure growth and sustained support for sustainable transport measures, as the Union administration is set to deliver the interim budget on February 1.

These are some of the top automobile sector corporations’ statements. The MD and CEO of Mahindra Last Mile Mobility, Suman Mishra, emphasizes how electric three-wheelers and commercial vehicles can promote inclusive revenue generating and open doors for many people to improve their financial situation. “We call upon the Union Budget 2024 to prioritize this segment through continued FAME support, fostering economic empowerment for the most deserving and environmental well-being for all,” she stated.

The GST on EV services must be lowered from 18% to 5% to hasten the adoption of EV-led delivery services. While the GST rate on electric vehicle (EV) purchases is 5%, while that on internal combustion engine (ICE) vehicles is 28%. However, the same distinction needs to apply to services. A concrete incentive for making sustainable decisions is also created by compensating users depending on their kilometers traveled and carbon saved. stated Akash Gupta, Zypp Electric’s CEO and cofounder.

The tax rate on luxury cars is currently high. Together with an additional 20 percent cess on sedans and 22 percent on SUVs, they are subject to the highest GST slab of 28 percent. A total tax incidence of up to 50% results from adding all of this.”We anticipate that capital expenditures on infrastructure projects will persist, supporting the automobile industry. Mercedes-Benz India MD and CEO Santosh Iyer stated that the government should continue to prioritize policies that promote green mobility and accelerate the use of electric cars.

According to him, the luxury car market prioritizes a rationalized tariff system and GST, and it contributes significantly to the GDP. “Overall, we expect consistency in various policies and no surprises in the upcoming budget,” Iyer stated.

Swapnesh R. Maru, Deputy Managing Director of Toyota Kirloskar Motor (Corporate Planning, Finance & Administration, and Manufacturing), voiced assurance in the government’s resolve to shift the economy and transportation sector towards a more environmentally friendly future by lowering reliance on fossil fuels.”Looking ahead, stable policies and continued efforts to boost investment and develop infrastructure will not only improve the country’s global competitiveness but also promote growth in the manufacturing and service sectors,” he stated.

Mayank Gupta, CFO of CarDekho Group, expressed optimism that the government would resolve GST irregularities of self-driving vehicles.”The government can consider addressing GST anomalies in self-drive cars, contemplating a personal tax rate cap of 30 percent through surcharge reductions, and extending long-term capital gains benefits to employee stock ownership plans (ESOP)”.

“To prepare the agricultural sector for the future, we hope to see measures that can further aid in the adoption of innovation and technology to improve agri mechanization in our country,” stated Narinder Mittal, Country Manager & Managing Director, Agriculture Business – CNH India & SAARC. Long-term industry success will depend on initiatives to raise farmers’ knowledge of contemporary farming techniques, financial literacy, and other pertinent topics.”

SOURCE: https://timesofindia.indiatimes.com/business/budget/budget-2024-automobile-sector-calls-for-continued-support-for-green-mobility/articleshow/107205492.cms?from=mdr