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The most awaited budget for the fiscal year 2019-2020 has been announced. A balanced interim budget has been announced by the NDA government amending the financial control and lenient to public announcements. The automotive sector was expecting that in the budget, the government will also mention hybrid with the Electric Vehicles (EVs) in the roadmap but it did not happen.
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We all know that India is almost dependent on the crude, so to minimize it, the Indian Government is growing EV push and is trying to move away from fossil fuels as soon as possible. To compete with the hold of the China on the global battery manufacturing monopoly, the government has decreased the import of the Electric Vehicle technology including motors and battery from 10 percent to 25 percent for improving the local battery manufacturing. The 2019 budget has restated its goal of EVs by 2030.
For the whole automotive sector, as a result of getting a discount of up to Rs 5 lakh every year, high disposable income will be created due to which there will be higher consumption which will result in the motor vehicle sales. The government is also trying to expand the road network in the rural areas which will help in increasing the automotive sales too.
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More tax was expected by the automotive industry on the import duties, especially with luxury cars which are paying 70 percent of tax. In the last three years, the continuous increase in the tax slabs and rates created a lot of doubts and the industry is expecting after the tax structure finalising it should at least work for two to three years and must be persistent.
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