Auto Industry Anticipates Higher Budgetary Allocation, New Policies

New Delhi: With less than a day left for the announcement of the Union Budget 2022-23, different industries are eagerly anticipating larger budgetary allocations to boost both manufacturing and demand in the domestic market.

While many industries such as handicrafts and real estate performed well in the year 2021-22, industries such as tourism and auto remained largely affected due to Covid as well as supply chain demands. Mr Arvind Verma, Co-founder, VehicleCare, told The Hans India that in the last year, personal mobility has witnessed a significant rise in the post-pandemic world and is now a necessity.

"The demand for automobiles is directly dependent on the growth of the economy, therefore the upcoming Union Budget will play a critical role in defining the way forward with initiatives such as tax benefits and relaxations for the common man. Additionally, to boost the start-up ecosystem, we look forward to liberal tax benefits and lower interest on capital," Mr. Verma said.

He also added that while the boost on clean-energy vehicles has received much attention in India, the abrupt transition to EVs may pose a serious threat to the large workforce involved in (Internal Combustion) IC engine manufacturing and after-sales service.

"A few attempts are on, however special focus with specific budget allocation will be required to revamp all the educational institutes and training centers to shorten the time and the agony of a common man engaged in the IC," he added.

Similarly, CEO and Co-Founder of Zoomcar, Mr Greg Moran said that with the right policies and support, the auto sector is poised for growth. With the rapid popularity of the Electric Vehicle (EV) segment as a product and investment opportunity, Moran says the government should focus on bolstering the infrastructure to enable easy manufacturing and usage of EVs and EV-related elements such as charging kiosks to boost demand.