Do you own auto stocks? These budget developments might shift them into high gear!
Explore the budget expectations for the automotive industry to stay updated and seize emerging opportunities.
As the Union Budget 2025 approaches, stakeholders in India's automotive industry are anticipating several initiatives to drive growth, innovation, and sustainability.
Innovations for a Cleaner, Greener Automotive Industry
Significant investment in research and development is essential to drive a cleaner, greener future in the automotive sector. Key priorities include enhancing vehicle efficiency, improving battery performance, and exploring alternative fuels like hydrogen and biofuels.
Support for Domestic Manufacturing
The sector seeks incentives to boost domestic manufacturing of EV components, including batteries and power electronics. Such measures would reduce dependence on imports, enhance the local supply chain, and position India as a competitive player in the global EV market.
Incentives for Electric Vehicles (EVs)
The industry is advocating for financial support and tax rebates to make EVs more affordable and accessible. Simplifying the Goods and Services Tax (GST) structure with a uniform 5 per cent tax across EVs, components, and charging infrastructure is essential to reducing costs and fostering growth. Additionally, resolving the inverted GST structure on raw materials will ease working capital pressures and encourage sustainable manufacturing.
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Investment in Charging Infrastructure
To address the current challenges of inadequate charging facilities, there is a call for substantial investments in charging infrastructure. This development is crucial to alleviate range anxiety among potential EV buyers and promote widespread adoption.
Focus on Last-Mile Connectivity
Recognizing the importance of efficient last-mile logistics, the industry anticipates policies that support the integration of EVs into public transportation and delivery services. This includes incentives for electric two-wheelers and three-wheelers, which are pivotal for urban mobility.
Stocks in Focus: Tata Motors, Mahindra & Mahindra, Olectra Greentech, Ashok Leyland, JBM Auto, Greaves Cotton, Exide Industries, Amar Raja Batteries, Adani Total Gas, Indian Oil Corporation. Stay tuned for in-depth insights and quick updates on Budget Day.
Disclaimer: The article is for informational purposes only and not investment advice.