Budget 2022 car cheaper or more expensive automotive sector ad by Nirmala Sitharaman

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Finance Minister Nirmala Sitharaman made several announcements to boost the Indian auto industry in her budget speech on Tuesday. This sector is considered important for the country’s economy as it represents 7.5 percent of the country’s GDP. In this budget, announcements have been made such as the announcement of a new battery exchange policy to encourage the purchase of electric vehicles, making partners with private companies in defense research and development for the development of automotive components. Along with this, the government has also announced an MSP of 2.73 lakh crores to help the agricultural sector, which can help increase the demand for cars in rural markets. We tell you about the Union Budget 2022 announcements released today that will help the Indian auto industry move forward.

battery change policy

The battery swapping policy is also one of the major announcements made by Finance Minister Nirmala Sitharaman in the Union budget for 2022. This policy will benefit the entire EV ecosystem in India. Automakers and EV charging infrastructure players will also benefit from this policy. This policy will help promote the purchase of electric vehicles in India. In the battery swapping policy, the government will encourage private companies to participate in the process of installing battery swapping stations and technology.

Promotion of the electric vehicle in public transport

Finance Minister Nirmala Sitharaman said the government will promote electric vehicles in the public transport sector. This will further help auto companies that make electric buses and commercial vehicles. This strategy will also help the respective supply chain partners of those companies.

Cars, motorcycles, scooters will not be cheap

Although Finance Minister Nirmala Sitharaman made some announcements to promote the auto industry in her budget speech, not all the demands of the auto industry in this budget were met. She ignored demands like tax cuts and revised tax structure to encourage and adopt new electric vehicles. Along with this, no major announcement was made to help the auto industry reduce the rising cost of inputs. In such a situation, it is highly unlikely that the price of the car, bicycle or scooter will become cheaper. Instead, there could be a price increase due to continued pressure on automakers.

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