Where Should Budget 2024 Focus For Auto Industry’s Growth?

The auto industry is crucial in India. With the increasing demand for EVs, the industry is going through a rapid technological overhaul. In this growing industry, people’s demands and preferences are changing regularly. Budget 2024 must offer more policies and incentives in favour of the auto industry to maintain its growth. What steps can Budget 2024 take to promote the auto industry’s growth?

How Can Budget 2024 Promote The Auto Industry’s Revolution?

The Budget 2024 can promote the auto industry’s revolution by following several steps. However, it’s important to know the current challenges in the auto industry first. The automobile industry is a technological overhaul. It means that technology is changing rapidly in the industry. Thus, it leads to quick changes in consumer preferences and demands. An industry needs to balance it out for meeting the consumer requirements. Secondly, the COVID-19 pandemic affected the auto industry’s growth. However, the 2023 hike in demand neutralised the previous lows. Still, several segments are lagging.

1. More Focus On The Infrastructure: The Budget 2024 must pay attention to the infrastructure. It has the capability of providing growth on a long-term basis. Thus, the industry would get slow but sustainable growth with infrastructure improvement. The government has worked on it in its previous budgets as well. The current year demands the same.

2. More GST Benefits To The Vehicles Promoting Alternative Fuel Options: The government should introduce relaxation in GST for commercial vehicles using alternative fuels. There are already several vehicles using electric-based automobiles. While other vehicles are using the fuel options like CNG gas as well. Technologies like Hydrogen-based fuel vehicles can also enter the market. However, there is yet a lot of work to make it a commercial reality.

3. More Benefits To Those Using Scrapping: Those using scrapping to let go of their old vehicles often don’t have enough money to buy a brand-new vehicle. Thus, they buy a used one. The current benefits are not enough to encourage them to buy the new vehicles.

4. Continuation Of Electric Vehicle Policies: The policies that promoted electric vehicles will end by this month (July 2024). Thus, there is a need to renew the policies so that electric vehicles can get the same boost in the coming year.

5. Encourage PLI Scheme For tyres:  The tyre industry has a huge potential. The PLI Scheme in the industry can help in increasing the exports of different types of tyres like run-flat tyres, smart tyres, and noise reduction tyres. Stay tuned for more information on our website.