Budget 2025: The automotive sector expects fiscal rationalization, improved infrastructure support

The Indian automotive sector awaits fiscal rationalization, greater support for the development of infrastructure and measures to boost the consumer spending of the 2025 Union Budget, which will be presented by the Minister of Finance, Nirmala Sitharaman, on February 1.

According to the data of the Industry Body Society of Indian Automobile Fabricaters (SIAM), up to 2,54,98,763 passenger vehicle units, commercial vehicles, two -wheeled vehicles, three -wheeled vehicles and Quadricycles were sold in 2024, with a growth 11.6% on 2,28,39,130 ​​units in 2023.

Source – Siam

In India, battery vehicles (BEV) attract a 5%GST rate, while hydrogen fuel cell vehicles (FCEV) are under the 12%category. In internal combustion motor models (ICE), which work with gasoline, diesel or CNG, the GST rate is 28% with an additional cessation of compensation, depending on its category.

Honda Motorcycle & Scooter India

Speaking with India Today, the director of Sales and Marketing of Honda Motorcycle & Scooter India, Yogesh Mathur, said: “We have seen that the economy slows down. It is now visible, even in numbers. This budget should help change those situations. So we wanted to support the infrastructure on the government’s side. “

“If something in terms that money is made available to the consumer, so that the expense improves, and if that expense becomes better, the general economy will begin. Therefore, something in terms of rationality, both in Terms of spending power and the expenditure of the government side, so that the general economy and money in general flow in the market.

Two -wheeled vehicles with an engine capacity of up to 350cc come under a 28%GST rate. However, those with more than 350 cc of motor capacity attract 28% GST and 3% cessation compensation.

Hyundai Motor India

Answering a question of India today during the interaction of the media of the fiscal year of Hyundai Fy25, a spokesman said: “The government is strongly supporting electrification. There are expectations that government support will focus on sustainability and mobility, as such for the automotive sector.

Skoda Auto Volkswagen India

Skoda Auto Volkswagen India MD and the CEO Piyush Arora said: “The next budget presents an opportunity to address some pressing needs of the automotive sector. A long -term vision for a favorable fiscal structure that attends to different automotive technologies would certainly benefit the industry. The industry.

“… the assignment of the budget to facilitate the BEV ecosystem such as the collection infrastructure will give more elevation to sustainable mobility. The allocation of a budget for a better and safe road infrastructure will facilitate the growth of the automotive industry,” he added.

In an important impulse for electrical mobility in India, the Government of the Union introduced the RS 10.9 billion pm Electric rupe adoption of BEV through subsidies and demand incentives in models in different categories, proliferation of public load infrastructure and modernization of vehicle test agencies.

“There are early signs of growth of the automotive industry in the deceleration. Therefore, budget initiatives to boost the available income of consumers are necessary to support solid growth. I am optimistic that this budget will introduce future practical measures to strengthen The automotive sector and supports its role in economic growth and environmental ambitions in India, “said Arora.

Mercedes-Benz India

“We expect prospective budget measures that promote sustainable economic growth and improve the global competitiveness of India. The continuous impulse for the adoption of Bev by pursueing existing incentives, the development of infrastructure and the initiatives of R&D United States as a player as a player Key in Bev’s global value chain, “said Santosh Iyer, MD and CEO, Mercedes-Benz India.

“Reducing commercial barriers and simplification of regulatory frameworks can further integrate India into the global supply chain, while any additional measure that reduces the cost of doing business can cause new investments and boost the advent of new technologies And innovation

India witnessed the sales of luxury cars of around 52,000 units in 2024. This was the first time that the luxury cars segment exceeded annual sales of 50,000 units.

Mercedes-Benz India registered its best annual sales in 19,565 units in 2024, registering a growth of 12.4% more than 17,408 units sold in 2023.

Volvo Car India

Volvo Car India MD Jyoti Malhotra said that the 2025 Union budget reaches a critical situation for the Indian economy, dealing with global uncertainties and a deceleration in consumer demand.

“Looking towards the future, we hope that the budget prioritizes measures to boost consumer spending, accelerate the adoption of EV through incentives and infrastructure development and invest in skills development programs to address the evolutionary needs of the sector. It will be Crucial for the Indian automotive sector to navigate the current economic panorama and contribute significantly to the economic progress of the nation, “he said.

Omega Seiki Mobility

“As the 2025 Union Budget approaches, the Bev industry is anxiously waiting , which is prepared to revolutionize logistics and transport. Consumers, “said Uday Orange, founder and president, Omega Seiki Mobility.

“However, the challenge of high interest rates continues to weigh both consumers and companies, which makes it difficult to finance purchases and the development of EV infrastructure. There is a strong expectation that the Government will introduce measures to alleviate the Financial conditions to promote generalized adoption between segments. “

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