SOURCE : THE TIMES OF INDIA | PUBLISHED : 27 JAN 2025
Industry leaders in India’s automotive sector, including Zypp Electric, ParkMate, and Bry-Air, have high hopes for the Union Budget 2025. Key expectations include support for EV electrification, local battery manufacturing, and road safety measures. Other requests focus on funding for R&D, startup tax benefits, and infrastructure.
With the Union Budget 2025 set to be presented on February 1, the Indian automotive sector is eagerly anticipating key policy measures that could shape its future growth. Industry leaders have voiced their expectations, highlighting the need for policy support in areas such as electrification, battery manufacturing, infrastructure, and affordability. Here’s a look at what the auto inc expects from the upcoming budget.
Union Budget 2025: Expectations from the Auto Inc
Akash Gupta, Co-Founder and CEO of Zypp Electric, believes that accelerating the electrification of last-mile delivery is crucial for India’s environmental and economic goals. He said, “To successfully scale the electrification of last-mile delivery, we recommend continuing to allocate a budget for electric vehicles, including two – and three-wheelers by mandating logistics to go 100% electric by 2030, under budget 2025. We also propose implementing a per kilometer or per kg CO2 subvention scheme to incentivize aggregators to expand their EV fleets through government programs like Gati Shakti, FAME II, PLI, etc. We also recommend mandating logistics to go 100% electric by 2030.”
Rajeev Kapur, MD, Steelbird Helmets, said “To enhance road safety and boost the adoption of helmets, the government should consider the enforcement of a compulsory helmet mandate across all states of India, requiring both riders and pillion passengers to wear helmets. Besides that, reducing the GST on helmets from 18% to at least 12% to make high-quality safety gear more affordable and accessible.”
Dhananjaya Bhardwaj, CEO and Founder of ParkMate, expressed optimism about the government’s focus on innovation and startups. “The Rs 1 lakh crore fund for private sector R&D, backed by a 50-year interest-free financing scheme, is a game-changer. It empowers us to develop transformative parking solutions,” he said. He also welcomed the extension of tax benefits for startups, stating that it strengthens their ability to innovate and contribute to a smarter, sustainable future.
Stressed the importance of climate financing. He said, “Long-term support for battery-swapping infrastructure is crucial. Climate financing in the budget is key to deploying capital-intensive swappable battery infrastructure and ensuring energy management through Battery-to-Grid (B2G) deployments.
Abhijeet Sinha, Project Director of NHEV
Narain Karthikeyan, Founder of DriveX, shared his expectations for the pre-owned two-wheeler market, which is projected to reach $10 billion by 2026. “We hope for policies that promote price control, transparency, and vehicle quality in the used two-wheeler space,” he said. He also emphasized the need for investment in digital platforms to simplify vehicle transactions and enhance customer experience.
Nagesh Basavanhalli, Vice Chairman of Greaves Cotton Limited, believes that fuel-agnostic technologies and skill development will be vital for India’s mobility future. “Standardizing charging systems and investing in infrastructure with energy companies will accelerate EV adoption. Strengthening the domestic supply chain and investing in R&D will reduce import reliance and drive innovation,” he remarked.
Samrath Singh Kochar, Founder and CEO of Trontek, emphasized the need for continued support in the EV and energy storage sectors. “The upcoming budget should prioritize incentives for high-quality, long-lasting battery technologies to reduce dependency on imports and support renewable energy applications,” he stated.
SOURCE : THE TIMES OF INDIA | PUBLISHED : 27 JAN 2025
