Automakers expect continued fiscal support ahead of budget 2024

As the new session of Parliament commences, the nation prepares for significant announcements expected in the upcoming union budget for the current fiscal year. Ahead of the union budget, one of the key demands by the automakers is continued fiscal support for electrification and the growth of the automobile industry.  

Suman Mishra, MD & CEO, Mahindra Last Mile Mobility expects introduction of schemes such as the FAME-III (Faster Adoption and Manufacturing of (Hybrid and) Electric Vehicles in India) to provide further impetus for the domestic EV industry.  "I request the government to have consistent policy support for electrification, through introduction of schemes like FAME-III. FAME is the biggest request from the industry," says Mishra.

According to Vikram Gulati, Country Head & Executive VP (Corporate Affairs & Governance), Toyota Kirloskar Motor, policy consistency, maintaining fiscal discipline as well as building upon the current efforts to be the primary expectation for the upcoming budget. "The government has done a fabulous job in terms of maintaining the fiscal system during a very difficult and a very turbulent time in the past. This has helped us gain momentum as far as the fastest growing economy globally. So accordingly going forward, I think, consistency, as well as maintaining fiscal discipline and consolidate whatever we've been doing so far are the only expectation that we have," says Gulati.

Meanwhile, Rahul Bharti, Executive Officer, Corporate Affairs, Maruti Suzuki India Ltd (MSIL) says that effective execution, ground-level delivery, and infrastructure development will be crucial for the country's strong position going ahead. "The union budget is one of the policy changes where the government tries to keep a direction for the economy. Broadly what is healthy for the Indian economy is healthy for Maruti Suzuki. If demand goes up because of economic growth, Maruti Suzuki benefits alot. So anything that strengthens the economy is positive for us," says Bharti.

"And things not necessarily in the budget, but outside the budget also such as positive execution, delivery on the ground, infrastructure development. So all these are the measures that the government can take, which is outside the budget also and which is holding India in good stand," he adds.