Motown's Moment Of Aatmanirbharta

A smooth transition to green mobility takes centrestage in the Budget as India prepares to take on the mantle of the world's manufacturer in the new global order.

- RISHI KANT

IN DECEMBER 2022, after three years of subdued demand, the Indian automobile industry achieved a landmark. It pipped Japan to become the third-largest automobile market in the world. India sold 4.4 million light vehicles, against Japan's 4.2 million, according to S&P Global Mobility. In the recently concluded Auto Expo, Toshihiro Suzuki, representative director, and president, Suzuki Motor Corporation (SMC), said India has the potential to become the largest automobile market in the world.

These developments in tow with auto sector's contribution of 7.1% to GDP and 49% to manufacturing GDP, and tech-related disruptions were a harbinger to a bevy of announcements made by finance minister Nirmala Sitharaman in her Budget speech. Sitharaman introduced measures to further India's transition to green mobility, and spur demand for personal and commercial vehicles.

"This is a growth-oriented budget with a positive impact on the auto sector," says Vinod Aggarwal, president, Society of Indian Automobile Manufacturers (SIAM). Industry bodies also lauded the measures for the sector. "Focus on exports, manufacturing, local value addition, and encouraging green energy and mobility are indeed steps in the right direction," says Sunjay Kapur, president, Automotive Component Manufacturers Association of India. According to Sohinder Gill, director-general, Society of Manufacturers of Electric Vehicles, the Budget will incentivise local suppliers in the EV supply chain. "After passing through a difficult period of lack of good quality 'Made in India' EV components for the last two years, the local supply chains are beginning to take shape, and this Budget will further incentivise local suppliers because of the relative price advantage," says Gill.

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