Budget 2022 Expectations for Auto Sector: The economy is slowly recovering from the aftershocks of the Corona pandemic, but the auto sector is still struggling.
Budget 2022 Expectations for Auto Sector: The economy is slowly recovering from the aftershocks of the Corona pandemic, but the auto sector is still struggling. If the government makes some announcements for the auto sector in the budget of the next financial year 2022-23, it will help the industry to get back on track effectively. The last two years have been very bad for the two wheeler industry and this year also there is not much hope. In such a situation, veterans of the auto sector believe that the government can give relief through the budget and help it get back on track. Union Finance Minister Nirmala Sitharaman will present the budget for the next financial year on February 1.
Budget 2022 Expectations: Better education and employment for every child
Demand to increase investment in infrastructure
According to Gray Moran, CEO and co-founder of car rental platform Zoomcar, if the auto sector can return to speed on the basis of government policies and support. The coming era is of electric vehicles (EVs) and many Indian and international companies want to invest in this segment. In such a situation, the CEO of Zoomcar has suggested that the government should focus on infrastructure to promote the use and manufacture of EVs. This also includes the need to develop EV-related components like charging kiosks, that is, if the charging infrastructure is promoted, then the trend towards electric vehicles can increase. Apart from this, the co-founder of Zoomcar has expressed hope for more tax incentives for the travel and trade industry from the upcoming budget.
Budget 2022 Expectations: Demand to give industry status to real estate, experts give important suggestions before budget, home buyers will get big relief
EV industry can grow with easy financing
According to Sameer Agarwal, founder and CEO of fintech lending platform RevFin Financial Services, the trend towards EVs can be increased when finance facilities are available. The government has already increased the demand for passenger EVs through subsidies, but the journey is still long, that is, there is still not much attraction about it. Apart from this, due to lack of financing facility in the commercial EV segment, it is facing problems. According to Agarwal, this industry can be worth 15 thousand crore dollars (11.22 lakh crore rupees) by the year 2030. In such a situation, he has drawn the attention of the Finance Minister towards providing financing facilities in an easy way.
Budget 2022: Expected to focus on these sectors including infra, hospitality in the new budget, you can bet on these stocks including HCL Tech, HDFC Bank and Wipro
Tips to capitalize on the opportunity of chip shortfall
According to Shashidhar Nandigam, CEO and co-founder of CredR, two-wheelers faced the twin problems of price hike and supply not meeting demand due to chip shortage. According to Nandigam, the government can capitalize on this as a golden opportunity. There is a shortage of chip in the world, so if it is made domestically, then not only will it reduce its dependence on imports but there is also a chance to become a supplier. According to the CEO of CredR, the EV sector is expected to grow through subsidies and incentives.
Budget 2022: Economic survey comes before the budget, why is it such an important document? Know the details here
Demand to create special window for startups
According to Sakshi Vij, founder of car rental and car subscription platform Myles Cars, incentives should be boosted to increase the demand for individual and commercial EVs in the country. Global equations have changed after the Corona pandemic and companies are looking to other countries other than China for investment as an alternative for the processed goods industry. In such a situation, Vij believes that India can take advantage of this opportunity and an EV-manufacturing hub can be created in the country. Vij has expressed hope that important announcements will be made in the budget to promote EV financing and encourage customers. They have demanded proper taxation for imports so that more and more EV options can be made available in the country. Apart from this, such a window has been advocated for startups where they can be easily accessed.
Budget 2022: Raghuram Rajan’s important advice before the new budget, the government should take more measures to stop the K shape recovery
Demand to promote R&D through PPP
Apart from the lack of chips, the auto sector is facing problems due to repeated lockdowns due to the corona epidemic. In such a situation, according to Aman Singh, Head of Analytics, Intangles Lab, at this time the most attention needs to be given to the rising commodity prices, which is affecting the long-term interests of the auto industry. Apart from this, talking about EVs, according to the Corporate Average Fuel Economy (CAFE) norms, the government can increase the prices and there are also challenges of increasing the prices of vehicles due to the increased cost of EV infra.
In such a situation, the auto sector is hoping for tax incentives and regulatory reliefs so that more and more investments can come in the EV ecosystem. According to Aman Singh, EV charging infrastructure needs to be increased and incentives need to be given on manufacturing and R&D (Research and Development). Aman Singh has advised to release funds for R&D through Public-Private Partnership (PPP) with the objective of developing EV technology into a fixed term goal according to Indian conditions.
Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.
,