Union Budget 2023-24: Read The Key Highlights For Automobile Sector

Nirmala Sitharaman has presented the fifth budget for the nation under the Modi government. This time the budget looks more friendly to the common man and there are some reliefs for them.

According to Nirmala Sitharaman, the goal of this budget is to focus on last-mile connectivity, infrastructure and investment, green growth, youth power, unleashing potential, inclusive development and the financial sector.

Indian automobile is the world’s third-largest auto market and contributes nearly 7.1% to the Indian GDP. The budget’s major focus is on green mobility, hydrogen production, and EV tax exemptions.

This time govt has extended the subsidies on EV batteries for another year and reduced the customs duty on lithium-ion batteries from 21 per cent to 13 per cent.

Vinod Aggarwal, President, SIAM, said,  "33 per cent increase in capital outlay with an effective provision of Rs 13.7 lakh crores will spur growth in the economy resulting in a positive impact on the Auto sector.

Adding further, he stated, “The Auto industry is fully aligned with the initiatives on Sustainability and Decarbonisation and increased focus on Hydrogen, Ethanol Blending, Bio Gas, Electric Vehicles and Battery Storage. All in all, this is a growth-oriented budget with a positive impact on the Auto Sector.”

The government has announced Rs 35,000 crore to achieve the goal of net zero carbon emissions by 2070. Along with this, the government has announced the National Green Mission with an expenditure of Rs 19,700 crores with a target of touching annual production of five metric million tonnes of Hydrogen by 2030. The government will spend Rs 75,000 crores on last-mile connectivity to connect ports, coal, and steel sectors. 

This budget shows a clear vision of the government towards making transport more eco-friendly.