Auto industry reacts to Budget 2024: Who said what

3 months ago | 42 Views

The Indian automobile industry largely reacted positively to the announcements made as part of the Union Budget 2024 in Parliament by Finance Minister Nirmala Sitharaman on Tuesday. During the course of the Budget 2024-25 presentation, Sitharaman stressed on the central government's key priority areas which include employment and skilling, manufacturing and services, infrastructure development and inclusive human resource development. And although she also proposed nearly halving the allocation for FAME II from FY24 Budget estimate of ₹5,172 crore to ₹2,671 crore for FY25, the overall Budget 2024-25 seems to have received a thumbs up from the automotive sector in the country.

Union Finance Minister Nirmala Sitharaman showcases a red pouch carrying the Budget documents, outside the Finance Ministry in North Block. (Arvind Yadav/ Hindustan Times)

Here is who said what on Union Budget 2024-25:

"The Indian Automobile Industry welcomes the continued emphasis on economic growth with several announcements especially the strong fiscal support for infrastructure in the next 5 years. The announcements such as liberal allocation for rural development & infrastructure of ₹2.66 Lakh crores is a welcome step that will boost the rural economy."

Vinod Aggarwal, President, Society of Indian Automobile Manufacturers, and MD & CEO, VECV

The recent budget announcement by the Government of India brings a blend of optimism and challenges for the auto retail sector. The focus on 'Garib', 'Mahilayen', 'Yuva', and 'Annadata' highlights a comprehensive approach towards inclusive growth, which is commendable. The enhanced Minimum Support Prices for major crops and the launch of Phase IV of PMGSY are positive steps that will boost rural incomes and improve rural connectivity, thereby potentially increasing rural auto sales. The adjustments in personal income tax, including increased standard deductions and relief for salaried employees and pensioners, are welcome measures that will enhance disposable incomes, fostering a more favorable environment for auto sales."

Manish Raj Singhania, President, Federation of Automobile Dealers Associations

“The Budget 2024 is a visionary and pragmatic blueprint designed to propel our economy forward and foster a sustainable future. I am confident that this budget presented by Hon'ble FM Nirmala Sitharaman will stimulate consumption, attract substantial investments, and stabilize inflation. This budget successfully addresses the dual imperatives of economic growth and fiscal responsibility."

Pawan Munjal, Executive Chairman, Hero MotoCorp

“We welcome the Union Budget 2024-25 with its forward-looking initiatives to boost job creation with focus on urban infrastructure and strengthening the manufacturing sector. The scheme linking job creation to the employment of first-time workers is a significant step towards fostering growth and inclusion. The incentives for EPFO contributions, benefiting both employees and employers for the first four years, will provide a substantial boost to our efforts in nurturing young talent is noteworthy."

Nirmal K Minda, Chairman and Managing Director, Uno Minda

“ACMA is delighted by the measures announced towards employment, skilling, internships and research. Reduction in customs duty to nil on critical minerals such as lithium, copper, cobalt, nickel etc. will encourage cell manufacturing in the country and add to the evolving EV ecosystem in the country."