The auto sector is expecting this from the budget!
Finance minister Nirmala Sitharaman will present the Union Budget on the first date of next month i.e. 1 february 2025. From the general public to big businessmen, everyone has many expectations from this budget. Now in such a situation, it remains to be seen what special the government is going to present in this year's budget. In this episode, many companies of the auto sector are also expecting a lot from this budget. Let us know what the automobile industry expects from this budget.
There has been a demand to cut GST on two-wheelers from this budget to be presented on 1 february 2025. The automobile industry demands that the Goods and services Tax (GST) rate on hybrid and electric vehicles be reduced from 28 per cent to 18 per cent. This move will encourage the adoption of eco-friendly vehicles and will be in line with the government's vision of a green and sustainable future.
This demand is being made for the EV segment
Many demands are being made in Budget 2025 for the EV segment of the auto sector. There are many demands from the government, from reducing EV loans to tax incentives, EV infrastructure, domestic battery manufacturing. Along with this, there is a demand to reduce GST on EV batteries from 18 per cent to 5 per cent. The Production-Linked Incentive (PLI) scheme is likely to be expanded in Budget 2025, especially for electric vehicle (EV) components and battery manufacturing. This will help make india a global EV production hub and accelerate green mobility solutions.
Incentive for research on hydrogen fuel
Special incentives are expected for research on hydrogen fuel and advanced mobility. Along with this, policies can be brought to develop strong charging infrastructure across the country, so that the process of EV adoption can be further accelerated.
Incentive for vehicle scrapping
New schemes and clear policies may be announced in the budget to encourage scrapping of old vehicles. This will not only increase the demand for new vehicles but will also reduce environmental pollution.
