InvestorQ : What does the auto sector expect from the budget2022?
Anjali Desai made post

What does the auto sector expect from the budget2022?

1 year ago
The global crisis has put a massive strain on the sector, which accounts for almost half of India’s industrial GDP, and nearly 7.5% of the country’s overall GDP. The automotive industry has undergone a significant transformation thanks to evolving consumer preferences. To bring the Industry and Auto Retail Trade back on a growth path, the industry hopes the Ministry will regulate and reduce GST rates on Two Wheelers to 18%.

Meanwhile, the introduction of Electric Vehicles (EVs) and the government’s emphasis on renewable fuels technologies have sparked confusion among consumers; they are now facing the dilemma of whether to opt for an EV immediately or postpone this plan. The government is responsible for making the country more attractive for investors to invest in various Indian start-ups, with the rapid increase in the demand for rental cars by the public rather than buying one.

The auto sector anticipates strong support from the government in the Union Budget 2022-23 in several areas, particularly direct and indirect taxation, and policy initiatives. The auto sector’s top requests include lowering the GST rate on electric vehicles and vehicles in general and taking steps to increase the salaried class’s disposable income. Given the historically low-interest rates on auto loans, the government may consider expanding the possibility of tax deductions on loan EVs to other vehicles.

The government’s increased focus on rural spending coupled with steps undertaken to boost rural consumption will support 2W segment recovery as well as benefit tractor OEMs and rural-focused 4W OEMs along with auto ancillary companies supplying to such OEMs. Reconsideration and upward revision of RoDTEP rates to enhance the competitiveness of Indian players