Indian Auto Industry Gives Mixed Reaction to Union Budget 2022

Today, the Union Budget 2022 was presented in the Parliament by Finance Minister Nirmala Sitharaman. The FM announced a new battery swapping policy for the electric vehicles in the country. Though the industry had hoped for various announcements in the Union Budget 2022 but sadly they faced disappointment. Shockingly, there was no direct or indirect announcement for petrol and diesel vehicle makers. Below are the reactions to the Union Budget 2022 by various CEOs and experts from the Indian auto industry:

Mr P B Balaji, Group CFO, Tata Motors said, “Budget 2022 is an articulation of purposeful intent enabled by a clear action plan. Building on the excellent budget of last year, the government has wisely continued on the path of prioritizing economic growth with calibrated fiscal prudence. For the Indian automobile sector, which is a significant contributor to the nation’s GDP, the budget offers continuity and also additional opportunities to drive multi-year growth. Specifically, the robust increase in capex by 35.4% to Rs. 7.5 lakh crore and a comprehensive investment plan for infrastructure is a significant growth booster. Additionally, the launch of the well-conceived PM Gati Shakti program for multi modal transport including 100 cargo terminals and investments in 25000 Kms of highways, apart from investments in ports and metros is an excellent development that will help create a world class transport infrastructure in the country."

“Union Budget 2022 sets the pace for the Indian Economy’s growth trajectory amidst the challenges brought forth by the 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. The strong push towards augmenting agricultural productivity should help enable buoyant rural demand. In the electric mobility space, we strongly support the measures undertaken by the Government to promote clean and green mobility, mainly introducing the battery-swapping policy will be instrumental in supporting an efficient EV ecosystem. There is an impactful thrust towards renewable energy incentives with an increased focus on reducing infrastructural waste for a greener tomorrow. We appreciate the Government’s vision of building the skilling ecosystem for youth in India, which will play a critical role in driving innovation in the industry,” said Venu Srinivasan, Chairman, TVS Motor Company

Shubhankar Chaudhry, CEO, One Moto India said, "Almost all the auto giants in India have stepped into EV manufacturing further to the launch of the e-mobility mission. In fact, a number of startups have also launched electric vehicles to leverage the shifting focus towards EVs over ICE. However, creating a balance between supply and adoption was a long-stalling challenge for every player. Imagine, when the consumer is ready to buy an EV but gets hesitant due to the absence of charging infrastructure. This could not have been achieved without ample government support towards creating the right infrastructure and fueling the adoption at consumers’ end. State governments have been launching policies and subsidies to accelerate the adoption at their end. Now with the Budget announcement of battery swapping policy, and charging stations at a scale, there is hope that we will soon have a robust system to support the increasing adoption of EVs on road."

Mr Yatin Gupte, Chairman & Managing Director, Wardwizard Innovations & Mobility Ltd. said, “We welcome the futuristic budget presented by our Hon'ble Finance Minister. I consider it as a visionary budget largely focused on sustainability and transition towards cleaner and greener mobility, which is the future of transportation. The proposed Battery Swapping Policy will provide a mammoth push to the EV adaptability campaign across the nation. We are eagerly looking forward to the Government’s ambitious vision towards upgrading the EV infrastructure ecosystem and also, easing the supply chain through a multi modal logistics park which will augment the movement of goods and services across the region. PM Gati Shakti will act as a catalyst for the industry, 60 lac new jobs will be created which will benefit the automobile industry. With the infra boost and changes in corporate taxes, the industry is optimistic that this budget will definitely augur well for the economic recovery and overall growth for the country.”

Mr Amit Kumar, ED & CEO, Benling India said, “The crisp and focused Union Budget 2022-23 just presented by our FM brings good tidings to the environmentally conscious and green aware industry sectors. We welcome the policy announcements with respect to Electric Vehicles (EVs) and believe that the measures announced in the budget shall go a long way in amplifying and buttressing the market for these products. At present many customers have a fair amount of skepticism about the use and operation of EVs, especially with respect to the battery issues and mileage concerns. The budget attempts to effectively allay these fears by bringing in welcome provisions for battery swaps and charging stations infrastructure. The introduction of the interoperability standards here is a long-awaited step and we are confident that this would further boost the industry and help put India’s auto industry on a positive and, needless to say, green trajectory. In addition to this, the overall EV eco-system is sure to get a shot in the arm through the added focus on cleat transport technology and the development of mobility zones.”