Interim Budget 2024: Auto Industry Leaders share their expectations

The Interim Budget 2024 will be presented in Parliament on February 1, 2024, by Finance Minister Nirmala Sitharaman.  Leaders from various sectors have shared their expectations and insights. Here’s what Auto Inc. would like to see in the budget.

Mr. Gaurav Sahay, Practice Head (Technology & General Corporate), Fox Mandal & Associates:

Demand from EV Sector: Subsidies in sub-assembly lines of EV vehicles will reduce the bill of materials cost and rationalising GST rates will create a cost-competitive environment. Lastly, the proposed battery swapping policy should ensure that start-ups and small-scale entrepreneurs are not affected due to the entry of big players in the industry calling for the requirement of standardization.

Mr. Nagesh Basavanhalli, Non-Executive Vice Chairman, Greaves Cotton Ltd.:

“With the 2024 Union Budget looming on the horizon, Greaves Cotton anticipates a nuanced approach by the Government to balance fiscal responsibility with investments in the economy to stimulate economic growth.  In addition to social welfare initiatives to improve the ease of living of our populace, the company expects measures to boost consumption and an enabling environment to drive both private and corporate investments in the economy.  Being an engineering major, Greaves is anticipating continued thrust on making India a manufacturing powerhouse, deeper investments in Infrastructure development and continued policy support in new-age industries like fuel agnostic and clean mobility, Electronics, and Sensors, amongst others, to enable India’s leapfrog to the future.

Mr. Harinder Singh – Managing Director & CEO, Yokohama India : “The upcoming interim budget, coinciding with elections, will set the tone for the government’s future plans. The 2024 budget is crucial for aligning tire manufacturing and EVs, steering the industry toward innovation and sustainability. The tire industry hopes for strategic allocations that drive innovation in durable and eco-friendly tires. Simultaneously, the EV segment would expect incentivising development of the ecosystem, including charging infrastructure investments, and research support, fostering a greener automotive landscape.”

“India faces challenges in rubber production, with high duties on natural rubber. Adjusting duty rates is vital for cost competitiveness. Rising raw material costs and reliance on imports impact profits. Encouraging research, local sourcing under ‘Make in India,’ and adjusting duty structures will boost global competitiveness and sector resilience.” Mr. Harinder added

Ravi Chandarana, Co-Founder & CEO, KwikFix Auto

“As we look forward to the upcoming budget, we envision a future where every vehicle on Indian roads is not just mobile but also safe and compliant. India is making remarkable strides in road infrastructure, exemplified by projects like Samrudhi, where roads are not only fenced but also elevated to significant heights. However, despite such advancements, accidents continue to occur, often due to inadequately maintained vehicles. India has a growing number of first-time car buyers who may have limited knowledge about vehicle maintenance. It’s crucial for the government to consider implementing mandatory vehicle fitness tests annually. This initiative can significantly enhance road safety by ensuring that vehicles meet stringent standards. We are dedicated to making vehicle maintenance accessible and convenient, and we believe that a mandatory fitness test aligns with the nation’s vision of safer and more reliable transportation. We look forward to budgetary support for measures that promote vehicle safety and compliance.”

Mr. Uday Narang, Chairman, Omega Seiki Mobility:

“For India’s electric vehicle revolution to truly shift gears, three factors must align: affordability, accessibility, and sustainability. Affordability hinges on continued government support: Reduced GST on lithium-ion batteries and the introduction of FAME 3 with clarity on subsidy of electric trucks, alongside domestic battery manufacturing and skilling initiatives. Accessibility demands a robust charging infrastructure that reaches beyond metros, powered by clean energy sources and bolstered by open data standards for seamless charging. Sustainability, a focus on responsible end-of-life battery management, with R&D in recycling and circular economy measures leading the way. Prioritizing these pillars is the only way India can unlock the true potential and adoption of electric vehicles.”

Mr. Nikhil Bhatia, Co-Founder & Chief Strategy Officer – HOP Electric Mobility: 

As anticipation builds for the upcoming finance budget, the electric vehicle (EV) industry is poised for transformative reforms. Advocating for a streamlined Production-Linked Incentive (PLI) scheme, stakeholders seek clarity in provisions to encourage investment and growth. The call extends to widening the scope of the FAME II scheme, fostering innovation in diverse EV segments. A crucial focus lies on incentivizing in-bound technology transfer and manufacturing capabilities, positioning India as a global EV technology hub. Anticipating the central role of lithium-ion batteries, we urge GST reform for increased cost-competitiveness. Charging infrastructure development, especially through public-private partnerships, is deemed pivotal for accelerated EV adoption. Moreover, the promotion of universal battery charging and swapping infrastructure aims to simplify the user experience and standardize EV charging. The forthcoming budget is anticipated to lay the foundation for a sustainable, technology-driven future in Indian mobility, aligning with global EV trends.

Mr. Sameer Aggarwal, CEO & Founder – Revfin Services :

Embracing a sustainable future requires bold steps, and in the upcoming budget, I advocate for a visionary approach towards renewable energy adoption. Investing in renewable energy infrastructure is not just an environmental imperative; it’s an economic opportunity that can power our nation forward. In the drive towards a greener tomorrow, the government can catalyze change by incentivizing renewable energy projects and R&D initiatives. By allocating resources to enhance solar and wind power capacities, we not only reduce our carbon footprint but also fortify our energy security. Crucially, as the electric vehicle revolution gains momentum, integrating renewable energy into the national grid becomes paramount. A strategic allocation in the budget for renewable energy will not only power homes but also fuel the burgeoning electric vehicle segment. By creating an ecosystem where clean energy sources power our transportation, we pave the way for a sustainable and resilient future. We envision a budget that aligns economic growth with environmental responsibility, driving the nation towards a future where renewable energy propels both our homes and our vehicles. It’s not just an investment in power; it’s an investment in a cleaner, brighter tomorrow for generations to come.

Mr. Sumit Aneja, Founder, Speedways Electric: 

“As we anticipate the upcoming Union Budget, our expectation is for a forward-looking and inclusive approach towards Electric Vehicle (EV) component localization. We urge the government to introduce comprehensive financial incentives and subsidies, including tax breaks, grants, and low-interest loans, to encourage domestic manufacturers in their research, development, and production of EV components. A clear and supportive regulatory framework that prioritizes local sourcing in EV manufacturing is crucial for stimulating localization efforts and establishing a competitive domestic supply chain. We look forward to investments in workforce development programs and educational initiatives focused on EV technology, addressing the skills gap and ensuring a skilled workforce for component production. The allocation of funds for building charging infrastructure and implementing policies that promote EV adoption will drive demand for locally produced components, creating a conducive environment for domestic manufacturing.

Furthermore, we hope for proactive engagement in international collaborations to access global best practices and technological advancements, facilitating knowledge transfer and enhancing our competitiveness in the global EV market. A strategic and collaborative effort between the government, industries, and educational institutions is essential to achieve 100% EV component localization and foster sustainable growth in the automotive sector.”

Mr Yatin Gupte, CMD, Wardwizard Innovations & Mobility Ltd.:

“The visionary stance of the Union Budget 2023-24 towards sustainable mobility played a pivotal role in the successful realization of the target of 1 million electric two-wheelers, providing crucial support to the industry. Looking ahead to the Union Budget 2024-25, there is anticipation for a further boost in support for Electric Vehicle (EV) infrastructure in the country. Optimism surrounds the potential reduction in both input and output Goods and Service Tax (GST) for EVs and spare parts—a move that would significantly enhance accessibility and broaden the reach to the masses. Additionally, hopes are high for increased financing opportunities, propelling research and development to a larger scale. This, in turn, would open doors for substantial investments in the ecosystem, accelerating India’s overall adoption of electric vehicles. A crucial aspect lies in the call for added incentives specifically directed at Indian Original Equipment Manufacturers (OEMs), aiming to stimulate advancements in localizing EV technology, fortifying the indigenous industry, and contributing to a more self-reliant and progressive economic landscape for the industry.”

Mr. Mayank Bindal, Founder & CEO, Snap E Cabs: 

“One of the most anticipated schemes to be continued is the FAME II subsidy (Faster Adoption & Manufacturing Electric Vehicles). This subsidy was announced in 2019 having a validity for 3 years. It is expected that the govt will continue this for the next few years in response to decarbonising the environment and achieve the targets of net 0 goals. Along with this, there is a proposal to reduce the GST on the Li-ion batteries from 18% to 5% overall, reducing the cost of acquiring EV’s. Since batteries are a major cost component in EV’s, the move to reduce the cost of batteries will make the product more lucrative for buyers. 

Over the past 5 years the government has focused a lot on building strong infrastructure. It is expected to continue improving and make efficient investments in energy, especially green energy and sustainable energy. The focus is on transitioning from carbon dependent to energy efficient policies. The new transport policies being adopted by the state govt is a testament to this shift. Many state transport authorities have announced the conversion of Petrol/Diesel cabs be converted into EV’s by the end of this decade. We look forward to EV financing getting priority sector lending status as the government’s ambitious target of 30% penetration to be achieved by 2023.”

Mr. Vaibhav Roongta, Chief Business Officer – Rays Power Infra Pvt. Ltd.  

“Recognizing the forthcoming interim budget leading up to elections, will be for a short period, the role of strategic budgetary allocations will be crucial in paving the way for future provisions that can accelerate the growth of the renewable energy sector. In line with India’s goal of achieving 500 GW of non-fossil energy by 2030 from the current capacity at 179.5 GW, there’s an opportunity to incentivise the shift to sustainable energy.” 

“Financial incentives such as tax credits, grants, and subsidies should be enhanced to make renewable energy solutions more economically viable for consumers and businesses alike. This can significantly reduce the initial investment barriers and accelerate the uptake of solar, wind, and other clean energy technologies.” 

“Addressing India’s dependence on solar panel imports, which reached $1.13 billion in the first half of the current financial year, is a pressing concern. Therefore, the budget should incorporate measures to promote indigenous development, facilitate technology transfer, and incentivize localized manufacturing initiatives to conserve foreign exchange. More proactive measures and fiscal incentives should be provided and efficiently implemented for making India a  BESS manufacturing and R&D hub.” 

“Furthermore, we stress the importance of establishing a long term and stable regulatory framework that streamlines approval processes for large-scale projects, open access projects, implement efficient net metering policies, and ensure seamless integration of renewable sources into the existing grid infrastructure. Collaboration between public and private entities is paramount to building a sustainable energy ecosystem that benefits both the economy and the environment.”


We are a major manufacturer that focuses on making UPS, Solar, and EV batteries. We are excited about the upcoming budget and hope it includes policies that support green initiatives and renewable energy. A budget that looks forward to the future could encourage research and development, improve electric mobility infrastructure, and make it easier for people to use sustainable power solutions. We want the budget to promote innovation, reduce our reliance on traditional energy sources, and help the country become more environmentally friendly and resilient. We at Arenq are committed to making high-quality batteries that are good for the environment, and we hope the budget supports our goal of creating a sustainable and energy-efficient world.

Mr. Anirudh Ravi Narayanan, CEO of BNC Motors Pvt Ltd. 

Overall, we are of the belief that it is time for the Government to end the FAME subsidy for 2Ws and 3W. Only by ending subsidies will manufacturers be forced to improve their cost structure further and become globally competitive. Subsidies have provided support for the industry thus far and have helped in achieving a good level of adoption. However, it’s time for the crutches to come off and for the industry to start standing on its own feet.

In addition, the removal of FAME will not have a major impact on the further adoption of EVs. We already saw this when FAME reduced from 40% to 15%, there was a dip in temporary sales but within 5 months the industry went back to monthly volumes in line with the pre-reduction.

When the industry was able to withstand such a large drop in subsidy, it should be able to sustain another reduction from 15% to 0%.

However, one downside to removing FAME will be re-entry of China-made products in India. To counter this, we suggest increasing duties on any automotive parts that are available in India at sufficient capacity and technology level. For example, some manufacturers are still importing motors and electronics, where Indian companies have globally competitive products at sufficient capacity. Some are importing even basic items such as chassis and plastic parts which can be easily localized. Higher duties will help increase localization, doesn’t require budget allocation, and will help increase Govt revenues.

We also would very much like to see the Govt follow through on the battery swapping policy which was announced in the Budget 2 years ago. This will have a tremendous positive impact on the EV industry.