New Delhi. Union Finance Minister Nirmala Sitharaman is going to present Budget 2024 in Parliament. Along with all the industry sectors of the country, the automobile sector also has high expectations from it. Let us tell you that the automobile sector has a major contribution in the manufacturing industry of the country and due to this the Union Budget has always attracted a lot of attention from the auto sector. Earlier this year, the Interim Budget presented lacked significant announcements for the auto sector.

However, with the full Union Budget 2024 to be presented on July 23, the Indian auto industry has high expectations from the government. Let us know what important announcements can be made in this budget for the auto sector.

Tax cuts for hybrid cars
Over the past few months, some automakers in India like Toyota have been lobbying for tax benefits for hybrid vehicles, saying that the technology allows the car to emit fewer pollutants into the environment than pure petrol or diesel vehicles. On the other hand, some other automakers like Tata Motors have been lobbying against it, saying that despite being electrified, hybrid technology emits pollutants and is in no way comparable to electric propulsion systems. The Uttar Pradesh government announced a registration fee waiver for strong hybrid and plug-in hybrid vehicles a few days ago, which has further strengthened the case of OEMs seeking tax exemption for hybrid vehicles.

Decision on FAME-3
In the Union Budget 2024, the government may announce the FAME 3 (Faster Adoption and Manufacturing of Hybrid and Electric Vehicles) scheme. After the successful implementation of the first and second phases of this scheme to accelerate the adoption of electric vehicles and promote manufacturing, the auto industry is demanding its third phase. It is expected that this will further boost the development of electric and hybrid mobility in India. The Government of India is aiming to make electric mobility account for 30 percent of the country's total vehicle sales by the end of this decade. In such a situation, FAME 3 is expected to play an important role. The auto industry hopes that the government will allocate more budget under FAME 3, which will focus on the comprehensive development of the EV ecosystem in the country.

Incentives for Scrappage Policy
Auto industry wants incentives for Vehicle Scrappage Policy. While the Government of India has already introduced the Vehicle Scrappage Policy, the industry hopes that Budget 2024 will introduce incentives for vehicle owners who opt for the Vehicle Scrappage Policy. This will further boost the strategy of removing old, polluting vehicles and replacing them with new vehicles.

Tags: Auto News, budget session