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Automobile Industry Reacts To Union Budget 2024: Mercedes, TVS, SIAM, And More
The Indian Automobile Industry has expressed positive reactions to the Union Budget 2024-25. Mr. Vinod Aggarwal, President of SIAM and MD & CEO of VECV, highlighted the government's focus on economic growth and infrastructure development. He noted, "The Indian Automobile Industry welcomes the continued emphasis on economic growth with several announcements especially the strong fiscal support for infrastructure in the next 5 years."
Mercedes-Benz appreciated the budget's focus on infrastructure, with a 3.4% GDP allocation for capital expenditure. They stated, "The budget clearly underlines Govt's priorities on creating a robust foundation for a developed Indian economy." However, they were hoping for a long-term GST reduction for BEVs.
Support for MSMEs and Skill Development
GT Force praised the credit guarantee schemes for MSMEs and investments in industrial training centres. Mukesh Taneja, CEO and Co-Founder at GT FORCE, said, "It's great to see how the Government thought of helping the MSMEs with funds requirements by announcing the credit guarantee schemes for MSMEs in manufacturing."
Quantum E-Scooters echoed similar sentiments regarding support for MSMEs and skill development. Mr. Chakravarthi C., Managing Director of Quantum Energy, mentioned that these measures would help address concerns related to capital and skilled workforce.
Focus on Women's Empowerment
Zelio E-Bikes commended the budget's emphasis on job creation and women's empowerment. Mr. Kunal Arya, Founder & Managing Director of ZELIO Ebikes, said, "The incentive for employing first-time workers and the credit guarantee scheme for MSMEs will undoubtedly provide much needed support to our manufacturing partners."
Omega Seiki Mobility also appreciated the budget's focus on women-led development and skill development initiatives. They noted that these steps would foster inclusivity and empowerment in the industry.
Infrastructure Development
IntrCity SmartBus welcomed the significant allocation for road infrastructure projects. They highlighted that this investment would enhance connectivity and improve inter-city bus transportation networks across India.
The company sees opportunities in regions like Bihar with planned investments of Rs 26,000 crore in road projects. This growth is expected to boost connectivity and journey experiences for travelers.
Environmental Initiatives
Deloitte pointed out that while there were no direct benefits to customers in the automotive sector, several indirect benefits exist. They mentioned exempting customs duty on critical minerals like lithium as a positive step towards supporting energy transition needs.
The company also noted that better road connectivity would improve logistics and boost rural demand through enhanced employment opportunities.
Industry Reactions
TVS Motor Company appreciated the government's long-term strategy focusing on growth and infrastructure development. They believe these measures will tap into India's young workforce potential.
The company also highlighted that continued commitment to infrastructure development would significantly boost economic growth and opportunities.
Rajeev Chaba, CEO Emeritus, JSW MG Motor India Pvt. Ltd. said, "During Union Budget 2024, Honourable Finance Minister's decision to waive import duties on critical minerals, including lithium, copper, and cobalt, is a step in right direction for the electric vehicle [EV] industry. This move will reduce battery manufacturing costs, making EVs more affordable and attractive."
He went on to say said, "It will also enhance lithium-ion battery production in India, supporting localisation efforts and advancing the sector's growth. Additionally, the government's initiatives for job creation and investment in industrial training centres will ensure a skilled workforce in the automotive sector. While the budget lays a strong foundation for overall economic growth, we look forward to ongoing government's support and incentives to accelerate green mobility and promote sustainable practices."
The Union Budget 2024-25 has garnered mixed reactions from major automobile brands. While there is appreciation for infrastructure development and support for MSMEs, some companies feel more targeted measures are needed for EV adoption. Overall, industry leaders see potential in the budget's initiatives to drive growth and innovation in India's automotive sector.
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