Budget 2017 has no incentives for hybrid and electric vehicles
New Delhi, Feb 1: Auto industry today expressed disappointment over the lack of higher incentives for hybrid and electric vehicles, besides ignoring of suggestions for fleet modernisation scheme in the Budget.
"We would have preferred an announcement of higher incentives for hybrid and electric vehicles which would have emphasised Government of India's war on pollution," Toyota Kirloskar Motor Vice Chairman & Whole-time Director Shekar Viswanathan said in a statement.
Expressing similar sentiments, Nissan India Operations President Guillaume Sicard said: "...there is nothing substantial for R&D for automotive industry, EV and Hybrid vehicles, which is a dampener." Volvo Auto India Managing Director Tom von Bonsdorff said while it was anticipated that there won't be any major changes in existing indirect taxes in this Budget in view of impending GST implementation, "any measures to promote green technology would have given customers more options of environment-friendly vehicles".
Society of Indian Automobile Manufacturers (SIAM) President Vinod K Dasari expressed disappointment that auto industry's request for the incentive-based fleet modernisation scheme has again not found support in the Budget. Moreover, there was a genuine case for continuation of 200 per cent weighted deduction on R&D expenses for Auto industry, which remained unacknowledged in Budget proposals, he added.
However, he expressed satisfaction that Rs 175 crore has been allocated towards funding of the electric and hybrid vehicle programme, through FAME scheme. Renault India Operations Country CEO and MD Sumit Sawhney said one of the focal decisions that the automotive sector was looking forward to from this Budget was the GST roll-out, and how different vehicle categories will be taxed.
"Another area which deserved attention was the vehicle scrappage policy. A clear roadmap on these policies would have given a boost to the industry. Although the Budget didn’t have much for the automobile sector, we are hopeful for some pro-business policies on a continual basis to benefit the industry," he added.
Hyundai Motor India Senior Vice President - Sales & Marketing, Rakesh Srivastava said the budget allocation on infrastructure development will create investments, generate employment and enhance mobility across the country. "Further income tax concessions to MSME and lower personal income tax will enable affordability of cars for entry level buyers," he added.