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<ul><li>The <keyword id="15478236" type="General" weightage="20" keywordseo="budget-2024" source="Orion">Budget 2024</keyword> will be tabled by the finance minister Nirmala Sitharaman on July 23.</li><li>The <keyword id="20081557" type="General" weightage="20" keywordseo="auto-industry" source="keywords">auto industry</keyword>’s expectations from the Budget 2024 include FAME 3 scheme, incentives for hybrids and more.</li><li>Here are the key expectations from the auto industry for the Budget 2024.</li></ul> The Budget 2024 is set to be tabled on July 23 by the finance minister Nirmala Sitharaman and like each sector, the Indian auto industry also has set a lot of expectations from the Narendra Modi-led government’s first budget of its third term. From a boost to electric vehicles to infrastructure development, the auto sector has a series of expectations that it hopes will be addressed in the upcoming budget. This article delves into the key budget expectations of the auto industry in India <h2>FAME 3 scheme</h2>The Faster Adoption and Manufacturing of Hybrid and Electric Vehicles (FAME 2) has been integral for the electric vehicle (EV) makers as it has helped keep EVs affordable for the common man. With the government<a href="https://www.businessinsider.in/business/auto/news/government-is-reportedly-reworking-the-fame-ii-scheme-to-ensure-companies-use-domestic-components/articleshow/93752352.cms"> reworking</a> the FAME 2 scheme and then<a href="https://www.businessinsider.in/business/auto/news/electric-scooters-get-a-price-hike-of-up-to-16000-as-fame-subsidy-ends/slidelist/109136771.cms"> ending the scheme</a>, the prices of EVs have increased. <div type="Article" hostid="261" msid="111573138" title="Union Budget 2024: When will it be presented, what time, where to watch and what are various sectors expecting?" mstype="2" mssubtype="0"></div> With Budget 2024, EV makers will look towards the government for the FAME 3 scheme. The government is expected to announce the FAME 3 scheme with an outlay of ₹10,000 crore. While the exact details of the scheme will only be known once the budget is announced, it will be aimed at boosting demand by subsiding the cost, while also promoting local manufacturing of key components. “In the upcoming budget, we advocate for initiatives and subsidy structures without segment caps which will in turn foster innovation and growth across multiple segments. Recent discussions surrounding the implementation of FAME 3 present a notable opportunity to enhance EV adoption in India,” said Niraj Rajmohan, CTO and Co-Founder, Ultraviolette. "Proposed measures to promote e-buses and enhance payment security are crucial for accelerating sustainable transportation. Comprehensive support for the entire EV ecosystem is essential. Anticipated policy reforms like FAME-III and increased funding for critical EV segments will foster holistic industry growth," said Kartikey Hariyani, Founder and CEO, Charge Zone. <h2>Petrol and diesel under GST</h2>One of the frequent demands recently has been to bring petrol and diesel under goods and services tax (GST) to bring the fuel prices under control. Oil Minister Hardeep Singh Puri has said that the government will try to bring petrol and diesel under GST. At present, the central government levies excise duty on petrol and diesel, while the state government imposes value-added tax (VAT) and sales tax. <h2>Incentives for hybrids</h2>While electric vehicles have long been subsidised by both state and central governments, hybrids have not received the same love. Union Minister Nitin Gadkari had earlier this year<a href="https://www.businessinsider.in/business/auto/news/gadkari-vows-to-eliminate-petrol-diesel-vehicles-in-india-bats-for-lower-tax-for-hybrid-cars/articleshow/108936085.cms"> pitched</a> for lower GST on hybrid vehicles. “The proposal to reduce GST on hybrid vehicles to 5% and to 12% for flex engines has been sent to the Finance ministry which is considering the requisition,” Gadkari said. Companies like Maruti Suzuki have a strong presence in hybrids and have a lot to gain from incentives, while companies like Tata Motors who do not have hybrid technology may take a hit on EV sales. With the government looking to reduce dependence on petrol and diesel cars, hybrids may finally get some incentives in the upcoming budget. The UP government has already started offering incentives to select hybrid cars. <h2><keyword id="22433272" type="General" weightage="20" keywordseo="vehicle-scrapping" source="keywords">Vehicle scrapping</keyword></h2>Industry bodies such as the Society of Indian Automobile Manufacturers (SIAM) have sought incentives for vehicle scrapping. These are vehicles that have crossed a certain age and are being scrapped keeping in mind the pollution. While a policy is already in place, the stakeholders are looking for increased incentives, especially for commercial vehicles such as trucks and buses, which account for most of the emissions. <h2>PLI scheme</h2>Automakers are also looking for increased incentives under the Production Linked Incentive (PLI) scheme, for both ICE and EVs. Companies want the scheme to be expanded to more components, including tyres, which have seen a lot of changes. SEE ALSO: <a href="https://www.businessinsider.in/stock-market/news/the-biggest-ipos-in-indias-history-lic-to-paytm-companies-that-have-raised-the-most-funds/articleshow/111690863.cms">The biggest IPOs in India’s history – LIC to Paytm, companies that have raised the most funds</a> <a href="https://www.businessinsider.in/business/auto/news/its-raining-discounts-maruti-suzuki-hyundai-tata-motors-and-others-offer-discounts-on-cars-as-sales-slowdown/articleshow/111688501.cms">It’s raining discounts – Maruti Suzuki, Hyundai, Tata Motors and others offer discounts on cars as sales slowdown</a> <a href="https://www.businessinsider.in/business/news/zomato-and-swiggy-increase-platform-fee-by-20-food-deliveries-to-get-costlier/articleshow/111758782.cms">Zomato and Swiggy increase platform fee by 20% – food deliveries to get costlier</a>

Budget 2024 Expectations: FAME scheme, aid for vehicle scrapping and other expectations of the auto industry

As part of his ambition to make <keyword id="19895063" type="General" weightage="20" keywordseo="india" source="keywords">India</keyword> a green economy, Union minister <keyword id="19897455" type="General" weightage="20" keywordseo="nitin-gadkari" source="keywords">Nitin Gadkari</keyword> wants to slash GST on hybrid vehicles and has vowed to rid the country entirely of the over 36 crore petrol and diesel vehicles. "One hundred per cent," <keyword id="19934966" type="General" weightage="20" keywordseo="gadkari" source="keywords">Gadkari</keyword>, the Union Minister for Road Transport and Highways, said when asked whether it is possible for India to get rid of petrol and diesel cars altogether. "It is difficult but not impossible. This is my vision," Gadkari said in an interview to PTI. He said India spends Rs 16 lakh crore on fuel imports. This money will be used for improving the life of farmers, villages will be prosperous and the youth will get employment, the minister said. Gadkari did not give any timeline to meet this ambitious target which even proponents of green energy believe is mind bogglingly difficult. The proposal to reduce GST on hybrid vehicles to five per cent and to 12 per cent for flex engines has been sent to the Finance ministry which is considering the requisition, Gadkari said. The minister said he firmly believes the country can end fuel import by promoting the use of biofuels. Environmental activists welcomed Gadkari's vision for increasing green mobility, but also struck a word of caution by flagging the use of fossil fuels in the production of electricity. "In India, we are still heavily dependent on a fossil fuel-based energy system to power electric cars, and this needs to be changed. There is urgent need to ensure 100 per cent renewable energy alongside electric vehicles to tackle the climate crisis," <keyword id="21152150" type="General" weightage="20" keywordseo="avinash-chanchal" source="keywords">Avinash Chanchal</keyword>, a campaigner for Greenpeace India, told PTI. Gadkari said he has been pitching for alternative fuels since 2004 and is confident things will change in the coming five to seven years. "I cannot give you a date and year for this transformation to take place as it is very difficult. This is difficult but not impossible," Gadkari asserted. He said he firmly believes that given the speed with which electric vehicles are being introduced, the coming era will be of alternative and biofuels and this dream will come true. Gadkari said auto companies such as Bajaj, TVS and Hero are also planning to manufacture motorcycles using flex engines and auto rickshaws using similar technology too were on the way. "I roam around in a car that runs on hydrogen. You can see electric cars in every other household. People who used to say this was impossible, have changed their views now and started believing in what I have been saying for the last 20 years," the minister said. "Tatas and <keyword id="19906966" type="General" weightage="20" keywordseo="ashok-leyland" source="keywords">Ashok Leyland</keyword> have introduced trucks that run on hydrogen. There are trucks that run on LNG/CNG. There are 350 factories across the country of bio-CNG," he said. "Definitely, a revolution is taking place. The fuel imports will end and this country will become self-reliant - <keyword id="19952544" type="General" weightage="20" keywordseo="atmanirbhar-bharat" source="keywords">Atmanirbhar Bharat</keyword>. I strongly believe in this," Gadkari said. SEE ALSO:<a href="https://www.businessinsider.in/business/telecom/news/ussd-based-call-forwarding-to-be-suspended-soon-to-curb-fraud/articleshow/108933705.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/telecom/news/ussd-based-call-forwarding-to-be-suspended-soon-to-curb-fraud/articleshow/108933705.cms" target="_blank">USSD-based call forwarding to be suspended soon to curb fraud</a><a href="https://www.businessinsider.in/business/auto/news/upcoming-cars-and-two-wheelers-launching-in-india-in-april-2024/slidelist/108869757.cms" target="_blank"></a> <a href="https://www.businessinsider.in/business/auto/news/upcoming-cars-and-two-wheelers-launching-in-india-in-april-2024/slidelist/108869757.cms" target="_blank">Upcoming cars and two-wheelers launching in India in April 2024</a><a href="https://www.businessinsider.in/tech/apps/news/from-ai-photo-editing-to-international-upi-payments-here-are-upcoming-whatsapp-features/articleshow/108815797.cms" target="_blank"></a> <a href="https://www.businessinsider.in/tech/apps/news/from-ai-photo-editing-to-international-upi-payments-here-are-upcoming-whatsapp-features/articleshow/108815797.cms" target="_blank">From AI photo editing to international UPI payments, here are upcoming WhatsApp features</a>

Gadkari vows to eliminate petrol, diesel vehicles in India, bats for lower tax for hybrid cars

<keyword id="6374528" type="CITY" weightage="100" keywordseo="Toyota">Toyota</keyword>'s Indian unit has announced that it would not stop selling hybrid vehicles locally, even as the implementation of <keyword id="6359833" type="ORGANIZATION" weightage="100" keywordseo="Goods-and-Services-Tax">goods and services tax</keyword> (<keyword id="6354679" type="ORGANIZATION" weightage="100" keywordseo="GST">GST</keyword>) has increased the taxes on this category. "We continue to be positive on hybrids irrespective of the price challenge. There is no change in our plan. We will continuously engage with the government and explain to them. We are hopeful that the government would reconsider it positively," N Raja, director, at <keyword id="118748" type="CITY" weightage="100" keywordseo="Toyota-Kirloskar-Motor">Toyota Kirloskar Motor</keyword>, told<a href="http://economictimes.indiatimes.com/industry/auto/news/industry/like-maruti-toyota-too-shrugs-off-gst-to-keep-selling-hybrids/articleshow/59552817.cms"> ET</a>. Earlier, the company had indicated that it might re-evaluate its strategy after the proposed tax of 43% on hybrid vehicles, including 28% GST and 15% cess. "We sold 1,300 units of the Camry in 2016. As much as 95% of them were hybrids. We will continue to sell the Camry hybrid as we feel the customer profile in the segment will not be affected with an increase of Rs 3 lakh. Most of them are CEOs, CFOs and businessmen. Moreover, they all want to try out a new technology and are conscious environmentally," Raja added. (Image source India Auto Bog)

Toyota to continue selling hybrid cars despite high GST

If you have been pondering whether to buy your dream car before <keyword id="6354679" type="ORGANIZATION" weightage="20" keywordseo="GST">GST</keyword> or after, it’s good that you haven’t bought it yet. Simply because your wallet would get some savings this monsoon. All thanks to the government’s decision to roll out GST and ensure all other allied taxes go off. 
Prices of popular cars have come down with sedans and luxury cars bringing the maximum discounts. While scooters are becoming cheaper, bigger bikes and hybrids above 350cc will cost more. 
 
Dealerships have been informed by car manufacturers to refrain from commercial activities this weekend. However booking of cars will be open. 
 
If you are wondering how much exactly the prices of popular cars have decreased after GST, scroll through the slideshow below.

This is how much popular cars like i10, Alto and Scorpio will cost after GST

India needs Elon Musk’s Tesla as well as local electric cars to compete⁠ — here’s what Finance Minister’s Budget 2021 may do

The auto industry witnessed biggest drop in 16 years in December as the sales fell by 18.66% in the month to 1.2 million units. 
 
This major fall is attributed to <a href="http://www.businessinsider.in/searchresult.cms?query=demonetisation&amp;sortorder=effectivedate">demonetisation</a>, which shook the industry. Now, the auto industry has high hopes from <a href="http://www.businessinsider.in/searchresult.cms?query=budget+2017&amp;sortorder=effectivedate">Budget 2017</a> that it will bring some reprieve for the automakers. 
 
"Budget is something which we all are hoping that the government will bring measures to boost consumer sentiment," <a href="http://www.businessinsider.in/searchresult.cms?query=SIAM&amp;sortorder=effectivedate">Society of Indian Automobile Manufacturers</a> (SIAM) Director General Vishnu Mathur said. 
 
READ ALSO: <a href="http://www.businessinsider.in/indias-auto-sector-witnesses-biggest-drop-in-16-years-thanks-to-demonetisation/articleshow/56470498.cms">India’s auto sector witnesses biggest drop in 16 years, thanks to demonetisation</a> 
 
The auto industry hopes <a href="http://www.businessinsider.in/searchresult.cms?query=arun+jaitley&amp;sortorder=effectivedate">Finance Minister Arun Jaitley</a> to announce a slew of initiatives such as concrete policy on fleet modernisation, specially of commercial vehicles and passenger vehicles. 
 
"We have also pointed out that the incentive scheme for electric mobility under the FAME scheme must be extended as most of the automobile companies have been working towards this direction," Mathur said. 
 
In order to promote eco-friendly vehicles, the government had formally launched the FAME India scheme in 2015 offering incentives on electric and hybrid vehicles of up to Rs 29,000 for bikes and Rs 1.38 lakh for cars. It envisaged Rs 795 crore support for the first two fiscals. Faster Adoption and <keyword id="3496050" type="UNKNOWN" weightage="20" keywordseo="manufacturing-of-hybrid-and-electric">Manufacturing of Hybrid and Electric</keyword> vehicles in India (FAME India) is part of the National Electric Mobility Mission Plan. 
 
On the taxation side, Mathur said it is unlikely that the <a href="http://www.businessinsider.in/searchresult.cms?query=GST&amp;sortorder=effectivedate">GST </a>will be implemented from April 1. 
 
"However, we have been seeking moderation of taxation for the automobile industry and reduction of slabs from the current four, ranging from 12-30 per cent, to two slabs," he said. 
 
SIAM had proposed a base rate for small cars and two- wheelers and another 8 per cent addition to that for larger cars, he added.

Hit hard by demonetisation, auto industry hopes for incentive schemes, moderate taxes in Budget 2017

New Delhi, Jan 26 () High GST rates, import duties and registration taxes are limiting the growth of luxury car market in India and the government must consider reducing these in the upcoming Budget, according to German luxury car maker Audi.
The company, which saw 28.92 per cent decline in sales at 4,594 units in 2019 as against 6,463 units in 2018, said every major player in the luxury segment saw decline in sales last year and government support would help in overcoming the downturn.
"Luxury car sales are impacted by high GST rates, import duties and registration taxes, which is limiting the segment to a mere 1.2 per cent of the overall car market; when compared to other global markets," Audi India head Balbir Singh Dhillon said.
He further said, "Every major luxury car player has de-grown in volumes during 2019."
Hence, Dhillon said, "We would urge the government/GST council to reduce GST, import duties and rationalise the vehicle registration cost on luxury cars, across the country."
Indian luxury car market comprising top five players -- Mercedes, BMW, Audi, JLR and Volvo -- witnessed a total sales of 40,340 units in 2018 and is expected to see a decline in 2019. Some of the companies are, however, yet to release their up to date sales data.
Luxury car market leader Mercedes Benz had reported 11.28 per cent decline in retail sales at 13,786 units in 2019 as compared to 15,538 units in 2018, while German compatriot BMW reported 13.8 per cent dip in its sales at 9,641 units in India last year as compared with 11,105 units sold in 2018.
Dhillon further said, "Easy lending by the banks and NBFCs will help expand the market and boost the overall automotive industry."
Stating that the government has placed a definitive emphasis on electric vehicles, he, however, said setting up of necessary charging infrastructure is key to the success of the EV-centric ecosystem.
"It is also worthwhile to mention that plug-in hybrid vehicles should also be encouraged with lower GST, import duties and registration taxes. This will encourage customers to take the first step towards PHEVs (plug-in hybrid electric vehicle) and eventually move to electric mobility in India," he added. RKL MKJ

Higher taxes, other levies hurting luxury car sales; govt must address: Audi India head

With the arrival of new stable government, <keyword id="6355261" type="POSITION" weightage="60" keywordseo="Finance-minister">Finance Minister</keyword> <keyword id="42575" type="PERSON" weightage="60" keywordseo="Arun-Jaitley">Arun Jaitley</keyword> is all set to present the <keyword id="6360189" type="COMPANY" weightage="80" keywordseo="Union-Budget">Union Budget</keyword> 2015-16. Since it is the <keyword id="6360789" type="ORGANIZATION" weightage="80" keywordseo="Modi-Government">Modi government</keyword>’s first full-term budget and they already have promised a transformational budget, expectations are high on decisions to be taken for any sector of the country and automotive sector is no different. Here is AutoPortal’s take on the automobile industry and the budget impact on it. 
 
With the increasing growth in demand on back of rising income, expanding middle class and young population base, in addition to a large pool of skilled manpower and growing technology, will propel India to be among the world's top five auto-producers by 2015. 
 A report published by Delloite says, “India is expected to become a major automobile manufacturing hub and the third largest market for automobiles by 2020”. The automotive industry in India accounts for around 22% of the country's manufacturing gross domestic product (<keyword id="35050" type="CITY" weightage="60" keywordseo="gdp">GDP</keyword>) and is one of the largest employment creators of the <keyword id="34412" type="ORGANIZATION" weightage="60" keywordseo="economy">economy</keyword>. 
 
However, sales of passenger vehicles in the domestic market grew just 3.67% in the April-December period (mainly after the excise cuts) this fiscal in comparison with the same period a year ago and the industry went through slowdown for most of last year. 
 The situation got worsen in January 2015, after the withdrawal of <keyword id="6356916" type="UNKNOWN" weightage="60" keywordseo="excise-duty">excise duty</keyword> concessions, car sales in India witnessed major decline with main players <keyword id="44883" type="CITY" weightage="80" keywordseo="Maruti-Suzuki">Maruti Suzuki</keyword> and <keyword id="596" type="CITY" weightage="80" keywordseo="Hyundai">Hyundai</keyword> posting single digit growth in January, while others like <keyword id="121834" type="COMPANY" weightage="80" keywordseo="GM-India">GM India</keyword> and Ford saw decline in sales. 
AutoPortal’s outlook on the upcoming budget over automobile industry is: 
 
· Reduction in excise duty: In February 2014 interim budget, excise duty on small cars, scooters, motorcycles and commercial vehicles was reduced to 8% from 12% previously. For SUVs, it was cut to 24% from 30%; for mid-sized cars, to 20% from 24%, and to 24% for large cars from 27% earlier, in the hope of boosting the sector. In June2014, the new government led by Prime Minister <keyword id="6354477" type="PERSON" weightage="80" keywordseo="Narendra-Modi">Narendra Modi</keyword> extended the excise duty concessions till December 2014. As a result, auto manufacturers were forced to increase prices. The auto industry SIAM, further wants to extend the relaxation in duties as this would keep the cost of ownership down for the ultimate owners and increase the interest for new buys. Further, long-term stability in excise duty structure is needed across the country, so that manufacturers can plan their products strategy for the next 3-5 years. 
 
· Inverted duty structure: The government is expected to address the inverted duty structure in the forthcoming Budget. Under the inverted duty structure, taxation of inputs is at higher rates than finished products that results in build-up of credits and cascading costs, thus favouring imports of raw material. Under the government’s “Make in India” approach, it is suggested to remove inverted duty structure to protect the interests of domestic industry. 
 
· Implementation of <keyword id="6354679" type="ORGANIZATION" weightage="60" keywordseo="GST">GST</keyword>: Implementation and speedy action on GST will bring in growth to the economy and create a uniform tax structure across all states. Also this will persuade more exports through increased competitiveness in the international market. The auto industry is keenly looking forward to the roadmap and introduction of GST. 
 
· Scrappage Subsidy Schemes: Introduction of Scrappage Subsidy Schemes on lines of European counterparts, which will clean old cars off the road. Budget should include Policy for scrapping old cars- 15 years and above, along with the infrastructure needed to scrap. This will benefit the environment, reduce fuel consumption and also propel further demands for automotives. 
 
· Green initiatives to manufacturing of electric and hybrid cars: With the upcoming budget, Green initiatives from the government to boost sale of electric and hybrid vehicles is expected and also needed as ‘Go Green’ is the motto for all leading economies of the world. The government is expected to announce special tax incentives to promote eco-friendly vehicles and provide more sops for hybrid/ alternative fuel for vehicles, to increase the marketability and usage of these vehicles and to improve environment and economy by bringing down fuel imports. Continuation of the tax incentives from the Budget for 2014-15 like investment allowance and duty cuts for hybrid vehicles/ parts is also expected. 
 
Electric cars are an eco-friendly variant of four-wheelers. But these cars need to be charged regularly which requires a particular infrastructure (charging locations) across the country. The auto sector needs the government to help setup the charging infrastructure across cities. 
 
· Custom duty unchanged for exported cars: Fully imported cars attract a customs duty in excess of 125%. To promote “Make in India” and to provide healthy competitive platform to domestic players, the auto industry hopes that the budget will retain the customs duty at the current rate which ultimately increases the cost of imported cars. 
 
· Lowering of interest rates for financing vehicles: According to a Business World report, “Over 80% of the vehicles purchased in India are purchased with financing from banks and other institutes”. Thus, a reduction in bank <keyword id="37018" type="UNKNOWN" weightage="80" keywordseo="interest-rate">interest rate</keyword> on loans will overall reduce the cost for the consumer, ultimately improving the demand for the automobiles. 
 
Before it is too late and the auto industry is back to the days of poor demand and high taxes, it needs a big push from the upcoming Budget to be back on a growth trajectory. In the wake of the government's 'Make in India' and big expectations from the upcoming budget, Indian auto industry shall witness an unprecedented sales and demand growth. 
 
About the author: This article has been authored by Sagar Das, head-<a href="http://autoportal.com/">Autoportal.com</a>, ex-India dot com Product Management &amp; business of OnCars. 
 
Image source: Autoportal

Budget 2015: Auto sector demands tax sops

EXCLUSIVE: Why Tata Motors CEO is not worried about Musk's Tesla coming to India

<ul><li>At a meeting of the Society of Indian Automobile Manufacturers, transport minister <keyword id="26680" type="PERSON" weightage="20" keywordseo="Nitin-gadkari">Nitin Gadkari</keyword> outlined a plan to make EVs comprise 15% of total vehicle sales in <keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword> in the next five years. </li><li>This is a significant jump from the 4% target announced by the government in May this year. </li><li>The government plans to boost EV sales by removing permit requirements and levying a modest rate of 12% on them under the GST regime. </li></ul>The Indian government wants you to know that it’s serious about mainstreaming electric vehicles (EVs) and reducing its reliance on oil imports. On September 6th, at a meeting of the Society of Indian Automobile Manufacturers, India’s ministers for transport and highways, Nitin Gadkari, announced that the government was aiming to make EVs comprise 15% of total vehicle sales in India within the next five years. This is a significant jump from the <a href="https://www.livemint.com/Industry/erIpud75QuSBuRaz94bSvN/Govt-sets-modest-target-for-electric-vehicle-sales-as-chall.html">4% target</a> announced by the government in May this year. In March 2018, it also announced a goal to make EVs account for 30% of all cars on Indian roads by 2030. Either way, making EV sales reach the 15% threshold by 2023 won’t be an easy task. <keyword id="381751" type="ORGANIZATION" weightage="20" keywordseo="Electric-vehicle">Electric vehicle</keyword> sales currently comprise a little over 1% iof all car sales in India. However, Gadkari outlined a few measures aimed at achieving this target. Firstly, electric vehicle owners won’t need road permits for their cars. The government has decided to exempt EVs and CNG vehicles from permit requirements in a bid to boost their sales. Secondly, EVs will be taxed at a rate of 12% under the GST without any further taxes. Thirdly, EVs that are imported for the purposes of testing will not exempt from duties. Additionally, government could also require ride-sharing services like Uber and Ola to have a certain amount of EVs in their fleet, a move that will be easier in the absence of permit restrictions. The Indian government will need to complement these measures with the establishment of adequate <keyword id="17408" type="DOMAIN" weightage="20" keywordseo="infrastructure">infrastructure</keyword> like charging stations under its the National E-Mobility Programme. The news comes as a number of car manufacturers are looking to introduce EV models in the country. Through a proposed joint venture, Toyota and Suzuki reportedly plan to <a href="https://economictimes.indiatimes.com/industry/auto/auto-news/toyota-suzuki-revs-up-plan-to-roll-out-hybrid-electric-vehicles-here/articleshow/65693024.cms">launch four models</a> of electric or hybrid vehicles in India by 2021. Maruti-Suzuki is said to be currently testing an electric version of its compact Wagon-R model.

India now plans to make EVs comprise 15% of all vehicles sales by 2023

The country's largest two-wheeler maker <keyword id="6357252" type="COMPANY" weightage="20" keywordseo="Hero-MotoCorp">Hero MotoCorp</keyword> has reduced prices of its mass selling models by up to Rs 1,800 to pass on GST benefits to its customers. "The quantum of reduction ranges from Rs 400 to Rs 1,800 on mass-selling models," the company said in a statement. The actual benefit varies from state to state, depending on the pre- and post-GST rates, it added. Some of the premium segment models would see a reduction of up to Rs 4,000 in certain markets, Hero <keyword id="738064" type="UNKNOWN" weightage="20" keywordseo="MotoCorp">MotoCorp</keyword> said. "In one or two states, such as <keyword id="41646" type="COMPANY" weightage="20" keywordseo="Haryana">Haryana</keyword>, where the pre-GST rates were lower than the post-GST rate, the prices of a few models may go up marginally," it added. The company sells a range of bikes priced between Rs 40,000 and Rs 1.1 lakh. Earlier on Saturday, car makers <keyword id="44883" type="CITY" weightage="20" keywordseo="Maruti-Suzuki">Maruti Suzuki</keyword>, Toyota Kirloskar, JLR and <keyword id="6355119" type="CITY" weightage="20" keywordseo="BMW">BMW</keyword> reduced prices in the range of Rs 2,300 to over Rs 2 lakh of different models to pass on to consumers the benefit of lower tax incidence under the GST regime. Maruti <keyword id="6911" type="CITY" weightage="20" keywordseo="suzuki">Suzuki</keyword> India (MSI) slashed prices of most of its models by up to 3 per cent with immediate effect except for diesel versions of sedan Ciaz and MPV Ertiga with mild hybrid technology, which saw increase in prices by over Rs 1 lakh.

Hero motorbikes to cost less. Here’s why

<ul><li>Finance Minister <keyword id="129243" type="PERSON" weightage="20" keywordseo="Nirmala-Sitharaman">Nirmala Sitharaman</keyword> income tax deduction of ₹1.5 lakh on the interest paid on loans taken to purchase <keyword id="6354973" type="UNKNOWN" weightage="20" keywordseo="electric-vehicles">electric vehicles</keyword>. </li><li>Under the Phase II of the FAME Scheme, the government will also build the necessary charging infrastructure.</li><li>In March 2019, the government had also announced incentives for EV manufacturers and consumers under the FAME-I scheme.</li></ul>In the Union Budget, Finance Minister Nirmala Sitharaman pushed for the Indian Electric Vehicles mission. In an attempt to make EVs popular, the finance minister announced tax subsidy for people who buy EVs. “To make electric vehicles affordable to consumers, our government will provide additional income tax deduction of ₹1.5 lakh on the interest paid on loans taken to purchase electric vehicles. This amounts to a benefit of around ₹ 2.5 lakh over the loan period to the taxpayers who take loans to purchase electric vehicles,” said Sitharaman. The Modi government has been bullish about the adoption of EVs in India. In March, the government announced incentives for EV manufacturers and consumers under the FAME-I scheme. The conditions were that at least 40% of the inputs that bus manufacturers use, have to be made in India. The limit will be higher at 50% for other electric vehicles such as two-wheelers, three-wheelers, cars and e-rickshaws. The proportion will be based on the on ex-factory price of the vehicles. The Minister during her budget said that Phase-II of FAME Scheme, following approval of the Cabinet with an outlay of ₹10,000 crore for a period of 3 years, has commenced from 1st April, 2019. “The main objective of the scheme is to encourage faster adoption of Electric vehicles by way of offering upfront incentive on purchase of Electric vehicles and also by establishing the necessary charging infrastructure for electric vehicles. Only advanced battery and registered e-vehicles will be incentivized under the Scheme with greater emphasis on providing affordable and environment friendly public transportation options for the common man,” she said during the speech. According to <a href="https://www.moneycontrol.com/news/india/cabinet-approves-rs-10000-crore-package-for-phase-ii-of-fame-scheme-3596961.html">reports</a> under Phase 1 of the FAME scheme, which was launched in 2015, a whopping 2,65,335 electric/hybrid vehicles were given a boost through “demand creation” and steps taken under “charging infrastructure and technological support”. This will come as good news for the auto industry players like <keyword id="42747" type="CITY" weightage="20" keywordseo="Tata-Motors">Tata Motors</keyword> and Mahindra &amp; Mahindra, <keyword id="44883" type="CITY" weightage="20" keywordseo="Maruti-Suzuki">Maruti Suzuki</keyword> and Hyundai who have been facing a slowdown in sales. Their electric vehicle segment might see renewed interest from consumers after today’s announcements. Startups like Ather Energy, Tork and even the recently turned unicorn Ola Electric too will gain from the incentives provided in the Budget. “The Government’s focus on Electric Mobility and EVs in the <keyword id="6147670" type="UNKNOWN" weightage="20" keywordseo="budget-2019">Budget 2019</keyword> is inspiring. Lower GST rate, interest subvention for EV loans and the commitment of ₹10,000 crore towards FAME 2 are encouraging. This further reinforces Ola’s mission to build Electric Mobility for India and the world and contribute toward making our nation, the global hub for innovation in this space," said Bhavish Aggarwal, Co-founder &amp; CEO of Ola.

Tata Motors, Maruti, Mahindra will benefit from tax deductions on electric vehicles

<keyword id="145965" type="TECHNOLOGY" weightage="20" keywordseo="semiconductors">Semiconductors</keyword> is one space which has not taken off in India yet. Blame it on the inability to compete with the cost structures in the existing markets, or the lack of focus by the Indian government on this sector. However, with the market being strong, and people wanting to do more electronic manufacturing in India - this can definitely help in setting up an eco-system. 
 
Just ahead of the Budget, we spoke to NXP semiconductors Ashok Chandak, Sr. Director Global Sales and Marketing, to learn the challenges this sector is facing in India, and therefore its expectations from the upcoming Budget. Here’s what he had to say: 
 “Owing to the rising interest of businesses in the Internet of Things, Connected Cars, Security and wearable computing, the electronics and semiconductor industry is growing rapidly. With initiatives like “Make in India” and “Digital India”, the country has observed an accelerated interest in localising the designs and manufacturing in ESDM space over the last 12 months along with other sectors. Several Indian and Global companies are showing a good amount of interest to setup the operations in India as Import still constitutes over 65% of the total electronic goods demand in India. With the trend of major reduction in Exports from India, the initiatives to reduce import duty burden on electronics will help the <keyword id="6368276" type="COMPANY" weightage="20" keywordseo="Foreign-exchange">foreign exchange</keyword> reserves and also currency stability. 
 However, the momentum needs to be sustained with policy aggravation at various levels of manufacturing, operations and business. Therefore, Budget 2016 is highly awaited where everyone is expecting policy level improvements to expedite growth. Manufacturing is key government focus and hence, it is important to rationalize Import Duty to promote the on-ground manufacturing and not just assembling. This will enable greater access to better technology and will be a huge enabler to the ESDM industry to help provide superior technology to a wider audience at more competitive rates. With innovation and design being at the core of ‘Make in India’, we believe the government should promote R&amp;D benefits to encourage more innovations from India and preference to Made in India products. Investment allowances for IT adoption can promote India as a premiere destination for both hardware and software development and hence, requires attention from the government. Early introduction of GST is also expected to bring a uniform <keyword id="6383566" type="PERSON" weightage="20" keywordseo="Taxation">taxation</keyword> standard across India, which in return will boost the commercial transactions in the country and benefit both corporations and consumers. 
 
Considering the large number of motor vehicle accidents in country, it is necessary to give major filip to the active safety. The regulations mandate on ABS , TPMS , Intelligent Transportation systems , Advanced driver assistance systems and Emission norms, would help to deploy technology and make the drives safer and more comfortable. Indian and global technology and auto companies are investing heavily to make ADAS and ITS a reality. While automakers are struggling with ways to protect their new and existing connected cars, there are technologies that can protect the privacy and security from the very start. The funding support for intelligent transport systems infrastructure and tax benefits for the ADAS , Digital Radio and Active Safety equipped vehicles would be very helpful in this direction. The government also needs to support promotion of the hybrid and electric vehicles and utilize technologies in order to promote innovation in the automotive space and reduce emissions in the country. 
 The Payment and <keyword id="34494" type="UNKNOWN" weightage="20" keywordseo="banking-industry">Banking industry</keyword> in India undergoing a major change in view of the major boom in e-Commerce and payment bank licences. While the security aspects have to be taken into account upfront. It is desirable to provide tax benefits for the cyber security, Secure Mobile Transactions, Chip based secure payment cards, Point of Sales terminals and infrastructures, to proactively address the end to end security needs of future and add to Make in India initiative. India is still struggling on the T &amp; D losses. The mandate on the Smart Metering and Smart Grid in addition to smart cities initiatives will help not only the T &amp; D losses but also help in having reliable and sufficient power to the citizens of the country. 
 
In summary , the Government need to provide benefits and encouragement for enabling secure connections and secure infrastructure for a smarter India and deployment of the technology solutions that make lives easier, better and safer.” 
 
(As told to Anushree Singh, Business Insider India)

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