Reactions to the Union Budget 2023 have been fast and thick coming. They are appreciative of the Government’s focus on carbon-free environment. On the focus in salaried middle-class who would see a relative rise in their disposable income. If that would materialise into a rise in vehicles sales or be spent towards the high cost of groceries and other such essentials, including the school fees of their children is something that will be clear over a period of time. Time will also tell if the positive intentions of the budget will actually inspire the people of the country to fulfil their aspirations by purchasing a personal set of wheels whose cost has continued to rise and is considered by many to be today at an exorbitant level. While the higher initial acquisition cost of EVs is understandable, that of the fossil-fuel powered vehicles is getting hard to justify even if it were to be adjusted against inflation, mentioned an industry observer. Automotive prices are getting well beyond the purchasing power of a larger section of the aspiring population in India, he added. The overall ownership cost of an automobile has also risen quite some in the last two years. A major chunk of the operating costs is now accounted for by the record high fuel prices. The cost of CNG too is claimed to be high and proving detrimental to the business, according to a transporter who recently bought a few CNG trucks for its fleet in a bid to offset the high operating costs of a diesel vehicle. 

Expressing that he thinks of the Union Budget 2023 to be growth-oriented, Shivaji Waghmare, CEO, Fuji Electric India Pvt Ltd, expressed that it strikes a balance between economic growth and social welfare. “It is great news that the budget has provided INR 350 billion priority capital investment towards energy transition and net zero objectives, and energy security,” he added. Appreciating the move to extend customs duty exemption to the import of capital goods and machinery required for manufacturing of lithium-ion (Li-ion) cells for batteries used in EVs, which would reduce the production cost and lower the cost of EVs, Waghmare said, “The manufacturing credit guarantee scheme for MSME is another laudable step. Youth have to be skilled to compete in Industry 4.0 and a lot of measures are being taken to make Indian youth market-ready,” he elaborated. 

Mahesh Babu - Chief Executive Officer, Switch Mobility Ltd, averred, “The government’s focus on infrastructure with enhanced capex of INR 2700 billion for roads and highways and the budgetary allocation for vehicle scrappage will certainly accelerate the growth of the CV market in India. In the EV sector, the government’s move to provide customs duty exemption for import of specified capital goods and machinery required for manufacture of lithium-ion cells for batteries is a welcome move, that will play a vital role in making local cell manufacturing cost competitive in the long run.” 

Kapil Shelke, Founder and CEO, TORK Motors, mentioned, “The changes in the income tax slab structure have enhanced the purchasing power of the populace. This move will encourage the adoption of cleaner, cost effective means of travel for their daily commute and the availability of FAME-II subsidy will further boost the sales of electric vehicles in the coming fiscal. Additionally, the extension on customs duty on the import of capital goods and machinery for developing lithium-ion cells would also enable EV manufacturers to localise their products in the long term, leading towards reduction in the cost of an electric vehicle for the consumer in the years to come, particularly for a brand like ours that are 95 percent indigenously manufactured in India." 

Venkatram Mamillapalle, Country CEO and Managing Director, Renault India, expressed, “The Union Budget brings cheers to the automobile industry as it will positively give push to sales. The budget has laid special emphasis on vehicle scrappage policy, which will not only boost sales but will also enable in achieving clean and green environment for overall sustainable development. The customs duty exemption being extended to capital goods and machinery required for the manufacturing of lithium-ion batteries used in EVs is a boost for companies that are or would be manufacturing EVs vehicles locally. It will also help reduce the cost of EVs.” 

Anirudh Bhuwalka, CEO, Blue Energy Motors, said, “The government’s focus on green mobility will provide a boost to the automobile sector and other segments which are in line with the mission to provide green solutions. The exemption on the excise duty on GST on compressed biogas and import of capital goods and machinery for batteries used in electric vehicles will propel the growth in the segment and enable industry players to further enhance their productivity. The collective efforts of the government and industry players will help the government achieve its vision to become Net-Zero by 2070.” 

Nemin Vora, CEO, Odysse Electric Vehicles, mentioned, “With the budget announcement completed, we can see the emphasis on this year's budget on wider adoption of Electric Vehicles for public as well as private use. The introduction of the National Hydrogen Mission in India is a huge step towards making the country greener and more sustainable. Government's decision to increase the income tax rebate limit on personal income from INR 500,000 to INR 700,000 in the new tax regime is a welcome step for the middle-class citizens. This step is likely to help the sector as more disposable income with salaried customers may give supplementary push to demand for personal vehicles.” 

Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles, averred, “After passing through a difficult period of lack of good quality” Made in India” EV components for the last 2 years, the local supply chains are beginning to take shape and the increase in customs duty on SKD/CBU is therefore timely as it will further incentivise the local suppliers because of the relative price advantage. There are still many a parts of EV componentry such as lithium cells, permanent magnets for electric motors, semiconductors, etc., that will need to be imported and we expected rationalisation of customs duty on such essential imports help keep the EV prices in check. The continuation of the customs duty-free status for machinery used to produce lithium-ion batteries could result in some stabilisation in battery pricing.” 

Satyakam Arya, Managing Director and CEO, Daimler India Commercial Vehicles, said, “The FY 2023-24 Union Budget shows consistency and an intent for growth. The 33 percent increase in capex outlay underlines the fact that the budget is pro-growth and the increase is to step up on the 7 percent growth achieved in the previous fiscal. Main highlights which stood out for us as a commercial vehicles manufacturer was the eye on digitalization by leveraging 5G, which can help optimize costs and improve efficiency in the sectors it is implemented; the INR 195 billion outlay for green hydrogen development is a step in the right direction for the future of heavy-duty trucks and largely, the logistics industry; INR 350 billion for renewable energy transition projects is also an interesting initiative but how this pans out in the medium term will mark its significance; the PM Awas Yojana that is planned for boosting rural housing would create more jobs and bring more projects for the CV industry.” 

Dr Anish Shah, Managing Director and CEO, Mahindra Group, expressed, “This is an outstanding budget as it is disciplined, growth-oriented, inclusive and sustainable. The steep increase in capex, to the tune of Rs 10 trillion will ensure the continuum of cyclical recovery. Capex spending is good because it has a higher multiplier effect: every Rupee spent on capex has a multiplier of INR 3 as compared to just about INR 0.9 for revenue expenditure. That apart, higher capex also creates jobs in the hinterland. The focus on core infrastructure, including increased funding for railways and clean energy, as well as the government's ambitious plans for the agricultural sector, will help to improve rural incomes. It is encouraging to see the government setting the pace for climate action by announcing a ‘green budget’ that will pave the way for a greener, cleaner planet.” 

Kunal Chandra, Co-Founder, Astro Motors, mentioned, “We are pleased to see the Government's continuing efforts to stay committed to green energy initiatives, making it one of the key points in this budget. The reduction of duties on lithium-ion cells from 21 percent to 13 percent will further boost the domestic manufacturing in India and make it cheaper for Indian consumers to own electric vehicles. The Monterey support in these growth sectors will definitely increase the adoption of electric vehicles at a faster pace and help us on our journey to achieve carbon neutrality." 

Santosh Iyer, Managing Director & CEO, Mercedes-Benz India, averred, “The Union Budget 2023 should drive demand as it focuses on boosting consumption by increasing the disposable income of taxpayers. Further, an increased capital expenditure on infrastructure, particularly roads, should also create demand for the automotive sector. The change in basic custom duties is however going to impact the pricing of some of our select cars like the S-Class Maybach and select CBUs like GLB and EQB, making them dearer. However, as we locally manufacture most of our models, this will not affect 95 percent of our portfolio.” 

Ketan Mehta, CEO and Founder, HOP Electric Mobility, said, “A largely all-encompassing inclusive budget offers something to cheer about for all sectors; emphasis on rural development – where resides the real ‘Bharat’, and Green sustainable climate consciousness is growth focused for a bright future. The Budget will drive economic growth, create jobs and attract investments. Pushing investments in sectors such as agriculture, fishery and cattle, and supporting procurement of components for electric vehicles, and focus on clean energy and fuels like Hydrogen will significantly enhance the prospects of segments that were in need of attention.” 

Of the opinion that an exceptional budget has been presented by balancing the need for sustaining rapid growth, while maintaining an eye on fiscal prudence, Vikram Gulati, Country Head and Executive Vice-President, Toyota Kirloskar Motor, said, “An outlay of INR 10 trillion towards capex which represents 3.3 percent of the GDP and a 33 percent Y-o-Y increase will definitely contribute to a robust economic growth. While doing so, the Government has aimed at a fiscal deficit target of 5.9 percent for the upcoming year with a clear glide path to bring the fiscal deficit below 4.5 per cent of GDP by 2025-26.” “The Budget which not only focuses on inclusiveness, youth empowerment and skill development, but also aims to give impetus to “Green Growth” with sufficient outlays for supporting the recently announced National Green Hydrogen Mission, doubling of allocation for FAME 2 scheme and for providing viability gap funding for Battery Energy Storage System (BESS),” he added.

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Toyoda Gosei Co., Ltd. recently received independent verification from third-party certification body SGS Japan Inc. confirming that it has reached capability Level 2 under the Automotive SPICE international standards, which evaluate the quality of automotive software development. This achievement reflects a major step forward in the company’s software engineering practices.

As next-generation software-defined vehicles become more common, where performance increasingly depends on digital systems, developing software that enhances product value has grown essential. Toyoda Gosei has responded by integrating electronic components with its traditional rubber and plastic products. The company has therefore established structured processes and strengthened its software development systems, which serve as the foundation for creating advanced products.

Specifically, within an interior lighting project, the company has achieved capability Level 2 in Automotive SPICE international assessment standards, confirmed by a third-party organisation that the company’s software development processes demonstrate systematic execution and proper management, achieving a uniform level of maturity. Moving forward, Toyoda Gosei aims to continue producing higher value products that contribute to more comfortable mobility spaces.

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Chinese automotive major Geely Auto has officially launched its i-HEV Intelligent Hybrid technology, which enters mass production immediately with the system slated for deployment across several models this year, including the Preface, Monjaro, Starray, and the fifth-generation Emgrand.

The technology utilises an artificial intelligence system and a dedicated hybrid powertrain to address historical gaps in fuel efficiency and smart feature integration.

The i-HEV system is built upon the i-CMA architecture, a hybrid-optimised version of the CMA platform that centralises the control of driving, cockpit and chassis functions.

A primary feature is the AI Cloud Power management system, which monitors exterior data such as temperature, humidity and altitude to optimise petrol-electric energy distribution. The company reports that this self-optimising strategy improves energy efficiency by more than 10 percent, while the engine achieves a thermal efficiency of 48.41 percent.

By decoupling the internal combustion engine (ICE) from the electric motor, the i-HEV adopts a motor-led layout designed to provide an electric-drive experience without external charging. The electric motor delivers up to 230kW, allowing the vehicle to operate on electricity for approximately 80 percent of the time. Performance data indicates a claimed zero to 30 kmph acceleration time of 1.84 seconds and a top speed of 66 kmph in electric mode.

The i-CMA architecture incorporates physical separation between oil and electric systems to enhance safety. Battery protection is managed through the Geely Battery Safety System, which includes a liquid-cooled battery with an IP68 resistance rating. The system is capable of real-time prediction for over 50 fault types.

Jerry Gan, CEO, Geely Auto Group, said, “Energy diversification is a strategic foresight for Geely Auto. A company’s true strategic focus is ensuring every path leads to the future, which tests the technological depth and powerful energy resilience of our entire system. The new i-HEV perfectly embodies this resilience, serving as a powerful testament to how artificial intelligence can elevate hybrid efficiency and performance to new industry standards.”

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Tsuyo Manufacturing (Tsuyo), an electric vehicle (EV) powertrain manufacturer, has been named as one of 15 Indian startups selected to represent the country in the deeptech category as part of the CII CIES Startup Delegation to Japan 2026.

The selection allows Tsuyo to engage with Japanese corporations during a period of increased EV expansion in Japan, aiming to establish long-term collaborations in engineering and supply chain integration.

The company specialises in electric powertrain solutions for three-wheelers, light commercial vehicles and heavy commercial applications, with a portfolio ranging from 0.5 kW to 400 kW.

Till date, Tsuyo has sold more than 200,000 motors and maintains partnerships with over 50 original equipment manufacturers (OEMs). The firm operates two manufacturing facilities in Greater Noida and focuses on research and development in collaboration with institutions such as the IITs and NITs.

In addition to its international engagement, Tsuyo recently received Single Window Clearance from the Government of Karnataka for a 20-acre manufacturing and validation campus in the Dharwad–Hubli region. This facility is intended to serve as a hub for the design, testing and large-scale production of powertrain components, reducing the domestic industry’s reliance on imported technology.

Vijay Kumar, Founder and CEO, Tsuyo Manufacturing, said, “Being selected for the CII CIES delegation is a proud moment - not just for Tsuyo, but for the evolution of India’s deeptech ecosystem. At Tsuyo, we see ourselves as a new age EV deep tech startup focused on co-creation, where innovation is built collaboratively across borders. India has the potential to engineer and scale world-class EV powertrain technologies, designed for real-world conditions and global applicability. Japan represents a strong strategic partner with its legacy of engineering excellence and disciplined manufacturing culture. Through this engagement, we aim to explore joint development opportunities, enable deeper supply chain integration, and contribute to the broader ‘Build India’ vision by strengthening local capabilities with global collaboration. Our approach to co-creation goes beyond technology - it extends to building robust supply chains, advancing futuristic mobility solutions, and aligning with the high standards of Japanese engineering. This is how we believe India will transition from being a growing EV market to a globally competitive EV technology hub.”

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Ola Electric has introduced the S1 X+ 5.2 kWh electric scooter, featuring the company’s indigenously developed 4680 Bharat Cell. The company claims that the launch marks the first time this cell technology has been integrated into a mass-market product. The e-scooter is available at an introductory price of INR 129,999 until 15 April.

The S1 X+ 5.2 kWh utilises an 11 kW mid-drive motor and an integrated motor control unit, providing a claimed top speed of 125 kmph and an IDC range of 320 km. It features a brake-by-wire system and front disc brakes. The use of the Bharat Cell reflects the company's strategy of vertical integration, which encompasses cell development, battery pack engineering and vehicle manufacturing.

Currently, Ola Electric’s portfolio includes the Gen 3 S1 scooter series and the Roadster motorcycle range. The S1 Gen 3 line-up consists of the S1 Pro+ and S1 Pro in various battery configurations, while the mass-market segment includes the S1 X+ and S1 X variants. The Roadster series is offered in X+ and X configurations with battery capacities ranging from 2.5 kWh to 9.1 kWh.

“With S1 X+ 5.2 kWh, we are taking our 4680 Bharat Cell to the mass market at scale. The same technology platform we built for our most advanced products is now powering a scooter designed for much wider EV adoption. This is exactly what vertical integration enables - the ability to innovate deeply, scale quickly, and bring our best technology to more and more customers, faster. S1 X+ 5.2 kWh is where performance, range and scale come together, and is another important step towards making EVs accessible to every Indian,” the company said in a statement.

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