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Union Budget 2022: Automotive Players Says It Is Close to Their Expectations

Presenting Union Budget 2022, Finance Minister Nirmala Sitharaman in her speech has announced some key measures to boost the Indian automotive industry. Announcing a new battery swap policy to encourage electric vehicle adoption is the most appreciative step along with opening up defence R&D to private players for auto component development.

MSP payment of ₹2.73 lakh crore along with other benefits to aid the farming sector, will eventually help demand for automobiles in rural markets to grow.

Here is what Auto players have to say about the budget 2022.

Mr Kenichi Ayukawa, President, SIAM said SIAM welcomes a growth-oriented budget focused on Building Long Term Strength using Investment as the growth lever while maintaining policy stability and inclusivity. The 35% increased Capex outlay, major infrastructure projects like 25,000 km road construction, 100 Cargo terminals, Project GatiShakti, 5G network, optic fibre cable laying and the recent PLI schemes are major positives. Leveraging Biomass and support to ethanol blending for both environment and economy gains could unlock the power of India’s rural economy. Steel price cooling off measures will help the entire manufacturing sector. Impetus to charging infrastructure and energy storage systems and government support in R&D for clean energy, green mobility and semiconductors will help the auto sector. We will work with the government for policy on green mobility, special mobility zones and battery swapping. We welcome the message on Ease of Doing Business and look forward to this being observed in spirit by all departments.”

Industry body ACMA President Sunjay J Kapur said the direction for the creation of urban fossil-fuel-free zones, policy for battery swapping and energy-as-a-service, and incentives for creating a vibrant start-up ecosystem can enable India to soon emerge as a forerunner of green mobility solutions for the world.

Automobile dealers’ body FADA President Vinkesh Gulati said battery-swapping and energy-as-a-service (EAAS) will surely help accelerate the transition towards clean mobility.

Automotive Tyre Manufacturers Association (ATMA) Chairman Anshuman Singhania said the increased outlays in the road sector and infrastructure development augurs well for the tyre industry.

Hyundai Motors India Managing Director Unsoo Kim said the government’s strong approach towards accelerating infrastructure development, sustainability along with digitalisation in every sphere of business will give a strong impetus to the overall economy while empowering consumerism in India.

Tata Motors Group Chief Financial Officer P B Balaji noted that Budget 2022 is an articulation of purposeful intent enabled by a clear action plan.

Mahindra and Mahindra Executive Director Rajesh Jejurikar said the road map laid out to usher in sustainable mobility by the finance minister in the Union Budget 2022-23 will bolster the electric mobility adoption in India.

Mercedes-Benz India Managing Director and CEO Martin Schwenk said the battery-swapping announcement is in the right direction and will be helpful to a limited segment.

Renault India Country CEO and Managing Director Venkatram Mamillapalle said the government’s focus on battery swapping policy to be brought with inter-operability standards and push for cleantech and electric vehicles will create the right ambient environment for EV introduction and overall harmonisation of the electric mobility aspiration of the nation.

Daimler India Commercial Vehicles Managing Director and CEO Satyakam Arya stated that the government would need to look at the GST rate for charging and swapping as a service going forward.

TVS Motor Company Chairman Venu Srinivasan on Tuesday said the Union Budget’s announcement of battery-swapping policy would be instrumental in supporting an efficient electric vehicle ecosystem. He termed the budget, presented by Union Finance Minister Nirmala Sitharaman, sets the pace for the economy’s growth trajectory amid the challenges faced due to COVID-19 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”, Srinivasan said.

The strong push towards augmenting agricultural productivity should help enable buoyant rural demand, he said.”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 (which) will be instrumental in supporting an efficient EV ecosystem”, he said in a statement. TVS Motor appreciates the vision of building a skilled ecosystem for youth in India, which would play a critical role in driving innovation in the industry, he said. Sitharaman, in her budget speech, proposed the formulation of a battery swapping policy for EV charging stations.

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