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.

Comments (0)

ADD COMMENT

Link Copied!

India’s automotive industry could face fresh supply chain disruptions by mid-July 2025 due to declining inventories of rare earth magnets, following tightened export restrictions and shipment delays from China, according to rating agency ICRA.

Jitin Makkar, Senior Vice President and Group Head – Corporate Ratings at ICRA, cautioned that the situation echoes the semiconductor shortage of 2021–22, which led to the loss of nearly 100,000 passenger vehicles. “Rare earth magnet inventories are projected to last only until mid-July 2025 for several passenger vehicle and two-wheeler applications,” he said.

Neodymium-iron-boron (NdFeB) magnets, critical for high-performance uses like EV traction motors and power steering systems, are heavily imported – around 85 percent of India’s USD 200 million imports in FY2025 came from China. These magnets make up nearly 30 percent of an electric two-wheeler motor’s cost, with motors priced between INR 8,000 and INR 15,000 depending on specifications.

To counter the supply challenge, Indian OEMs and auto component manufacturers are exploring several alternatives: importing fully assembled motors from China, sending rotors to China for magnet assembly, using substitute materials with similar properties, or switching to rare earth-free motors using electromagnets. However, each option faces significant logistical, regulatory, and engineering hurdles.

While the immediate impact could disrupt production planning, ICRA believes the crisis may also drive innovation and diversification in both materials and supply chains for the Indian auto sector.

Comments (0)

ADD COMMENT

Link Copied!

Hyundai Mobis, a part of Hyundai Group specialising in manufacturing of auto components, modules & systems, has developed a new rear safety control technology that can reduce rear-end collisions.

The company states its new active control technology uses sensors to detect approaching vehicles from behind and manoeuvre the vehicle out of danger, is expected to hit the market soon. It integrates sensors such as rear-side radars and front cameras with driving control technology.

The solution works when the driver engages the Smart Cruise Control (SCC) function on the highway. When the sensors detect any other vehicle at a proximity of 10 metres or less, it first emits an audio alarm or a visual warning on the cluster. When the situation keeps persisting after a certain amount of time, the vehicle automatically accelerates to maintain a safe distance. In addition, the rear side radars also detect the movement of the vehicle behind, while the front camera recognises the lane and vehicle ahead on the driving path to assist in safe acceleration.

Hyundai Mobis acknowledges that while some global OEMs have already integrated such technology, the functions are not yet advanced enough for the vehicle to control itself autonomously. On the other hand, its technology is able to independently adjust the distance between the front and rear vehicles and avoid dangerous situations.
The Korean company plans to further expand the scope of autonomous control for defensive driving against rear vehicles. Currently, the company is developing a lane-changing function to escape dangerous situations, in addition to an acceleration control function that allows the vehicle to speed up on its own.

Jung Soo-kyung, Executive Vice-President and Head of Automotive Electronics Business Units, Hyundai Mobis, said, “We will actively protect the safety of mobility users by providing solutions that can intelligently handle not only front-end safety, but also dangerous situations caused by rear vehicles while driving.”

Comments (0)

ADD COMMENT

Link Copied!

HARMAN, a leading automotive technology company and subsidiary of Samsung Electronics, has unveiled an advanced in-vehicle display that elevates the driving experience with consumer-tech-level visuals. This cutting-edge display, set to debut in the all-new Tata Harrier.ev, represents the first automotive integration of Samsung’s proprietary Neo QLED technology, exclusively licensed and optimised by HARMAN for vehicle applications.

The new 14.53-inch floating Neo QLED display delivers stunning home-theatre-quality visuals with vibrant colours, deep contrast and enhanced brightness, all powered by intelligent algorithms and a sleek, modern design. Engineered to perform flawlessly in all lighting conditions, the display incorporates HARMAN’s proprietary real-time visual control technology, which dynamically adjusts image output to optimize power efficiency. Among its key innovations are the industry’s first cadmium-free Quantum Dot display with intelligent Blue Mini-LED control, 1200-nit peak brightness, true black levels and an expansive 95 percent NTSC colour gamut. The ultra-slim design, featuring bezels under five mm, ensures a seamless and sophisticated aesthetic.

This breakthrough builds on HARMAN’s longstanding partnership with Tata Motors, which began with the integration of JBL audio systems in Tata vehicles across India. With the Harrier.ev, the collaboration now extends to premium branded displays, reinforcing both companies’ commitment to innovation and superior in-car experiences.

Shilpa Dely, Vice President – Displays, HARMAN, said, “We’ve brought together Samsung’s cutting-edge consumer display innovation and HARMAN’s deep automotive expertise to create something truly unique: a first-of-its-kind, in-vehicle visual experience that brings living room TV-level brilliance to the road. We have finally closed the gap between consumer and automotive display technology – and we’re proud to debut this global breakthrough with our trusted partners at Tata Motors.”

Anand Kulkarni, Chief Products Officer, Tata Passenger Electric Mobility Limited, said, “We’re committed to delivering world-class technology to Indian consumers. Together with HARMAN, we're bringing the best of consumer display innovation in India’s most capable SUV, the recently launched Harrier.ev, transforming it into a true third living space after home and office. This collaboration sets a new standard for in-cabin experiences – not just in India, but around the world.”

Sanjeev Kulkarni, Vice President – Sales, HARMAN, said, “Our partnership with Tata Motors spans more than a decade and is built on a like-minded approach to innovation, along with a joint promise to deliver the very best in-cabin experiences to our customers,”. “From JBL premium audio to advanced intelligent cockpit solutions, HARMAN is a defining part of the Tata driving experience. With the introduction of our new display product, we’re proud to take that collaboration even further.”

Comments (0)

ADD COMMENT

Link Copied!

Chinese-owned Swedish automotive major Volvo Cars has unveiled a new multi-adaptive safety belt, which it claims is a world-first technology aimed to further enhance safety for everyone in real-world traffic situations. The multi-adaptive safety belt is set to debut in Volvo EX60 in 2026, the company’s fully electric offering. It uses real-time data from the cars advanced sensors to adapt to traffic variations and the user wearing the seatbelt.

Based on the data input from interior and exterior sensors the seatbelt provides customised protection, adapting the setting based on the situation and individual’s profiles, such as their height, weight, body shape and seating position. For example, a larger occupant in a serious crash will receive a higher belt load setting to help reduce the risk of head injury. While a smaller occupant in a milder crash will receive a lower belt load setting to reduce the risk of rib fractures. Using over-the-air software updates, it gets better over time.

Asa Haglund, Head of Volvo Cars Safety Centre, said, “The world's first multi-adaptive safety belt is another milestone for automotive safety and a great example of how we leverage real-time data with the ambition to help save millions of more lives. This marks a major upgrade to the modern three-point safety belt, a Volvo invention introduced in 1959, estimated to have saved over a million lives.”

The Swedish carmaker stated that modern safety belts use load limiters to control how much force the safety belt applies on the human body during a crash. This new safety belt expands the load-limiting profiles from three to 11 and increases the possible number of settings, enabling it to optimise performance for each situation and individual. Unlike traditional systems, the new multi-adaptive safety belt can utilise data from different sensors, including exterior, interior and crash sensors. In less than a blink of an eye, the car’s system analyses the unique characteristics of a crash – such as direction, speed and passenger posture – and shares that information with the safety belt. Based on this data, the system selects the most appropriate setting.

Comments (0)

ADD COMMENT

Link Copied!