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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Cars24 has signed a Memorandum of Understanding (MoU) with the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, to support India's startup ecosystem through initiatives focused on artificial intelligence, mobility, and road safety.

As per the agreement, Cars24 will establish structured programmes for early-stage founders, granting access to its infrastructure, mentor network, funding sources, market connections and technical resources. In turn, the DPIIT will facilitate national outreach and ecosystem integration via the Startup India platform, supporting knowledge exchange, co-branding and policy engagement.

The partnership encompasses five specific areas of operation: mentorship for early-stage founders via the Cars24 Founders' Fellowship, training through Mobility and Autotech Skilling Programmes, technical support and AI integration via Cars24 Labs, investor connections through Fuel by Cars24 and the organisation of an annual Innovation Challenge and Road Safety Hackathon alongside the DPIIT.

Vikram Chopra, Builder, Cars24, said, “Cars24 is proof that Indian founders can start with a difficult, everyday problem and build something on a national scale. We want to pass that possibility on. Through this partnership with DPIIT, we are backing the next generation of builders with more than advice. We want to give them access, capital, talent and a real platform to test ideas that can make India move smarter and safer.”

A senior DPIIT official commented, “Industry participation is central to strengthening India’s startup ecosystem. Collaborations of this kind, where an established market leader opens up its scale, mentorship and resources to early-stage founders, are exactly the bridge between ambition and execution that young startups need. We welcome Cars24’s commitment to mentoring, skilling and supporting product startups across the country.”

The non-binding MoU establishes a framework for ongoing collaboration between both entities to foster technology adoption and entrepreneurship within the Indian mobility sector.

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NXP Semiconductors has announced that the BMW Group will deploy its Trimension NCJ29D6 Ultra-Wideband (UWB) family across its vehicle fleet, beginning with selected 2026 production programmes.

The hardware component integrates fine-ranging capabilities with short-range radar functionality on a single chip. This allows vehicle manufacturers to utilise a single system for multiple applications, including hands-free vehicle entry and occupant presence detection.

The integration supports BMW’s Digital Key Plus feature, which enables vehicle owners to substitute key fobs with smartphones or smartwatches. The system manages locking and unlocking functions as the user approaches or moves away from the vehicle. Additionally, the technology includes in-cabin radar monitoring designed to identify motion patterns consistent with occupants or animals left inside a parked vehicle, sending notification alerts to users to align with European and Chinese NCAP assessment protocols.

Markus Staeblein, Senior Vice-President and General Manager, Secure Car Access at NXP Semiconductors, said, “NXP’s proven Trimension UWB platform maximises value for OEMs, using a single system to deliver multiple new and differentiating features for drivers. Digital key and presence detection are just the beginning. OEMs will be able to deliver additional UWB-based features, such as kick sensing, intrusion alert or automatic charging, as they establish the secure hardware platform in their vehicles.”

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Envalior India, an engineering materials company formed through the merger of DSM Engineering Materials and LANXESS High Performance Materials, will inaugurate the Envalior Centre of Excellence in Electric Vehicle Technology on 5 August 2026 as part of its corporate social responsibility (CSR) program.

The CoE located at Marathwada Mitra Mandal's Polytechnic in Pimpri-Chinchwad, Pune, will be implemented by the BroadArks Foundation to provide vocational training in electric vehicle systems.

It plans to train 250 individuals annually through two courses: a Level 4 Certificate in EV Service, Safety & Maintenance and a Level 5 Advanced Certificate in EV Diagnostics & Systems.

The curricula align with the National Skills Qualifications Framework and carry certification support from the Confederation of Indian Industry. The programs target students from Industrial Training Institutes and polytechnics studying mechanical, electrical, electronics, mechatronics and computer science disciplines.

Training instruction covers classroom coursework and laboratory modules focused on vehicle architecture, battery management systems, charging infrastructure, thermal management, power electronics, diagnostics and workshop safety protocols. Practical assessments and industry projects form part of the curriculum structure.

Nileshkumar Kukalyekar, Business Director – South Asia, Middle East & Africa, Envalior, said, "The launch of the Envalior Centre of Excellence reflects our commitment to supporting India's transition towards electric mobility by investing in the people who will power it. Through this Centre, we aim to provide students with industry-aligned, hands-on training that prepares them for the evolving demands of the EV sector while contributing to a stronger and future-ready workforce."

In addition to student instruction, the facility is designed to support laboratory infrastructure and instructor development programs for technical education in the region.

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South Korean auto major Hyundai Motor Group has appointed Junghyun Kwon as Executive Vice-President and Head of the Autonomous Driving Development Center.

Kwon will oversee software engineering, deep learning integration, perception systems and commercialisation pathways for the group's autonomous mobility programs, reporting directly to Minwoo Park, President and Head of the Advanced Vehicle Platform (AVP) Division.

He joins the group following technical management roles in software development and artificial intelligence across international technology firms. Kwon previously managed autonomous driving software development and deployment at NVIDIA before directing intelligent robotics development at Samsung Electronics. His technical background covers machine learning models, computer vision systems and vehicle perception frameworks.

The executive appointment forms part of a broader recruitment sequence targeting software-defined vehicle architectures and autonomous driving systems.

Earlier in July, Hyundai Motor Group appointed Dongwuk Kim as Senior Vice-President and Head of the SDV Platform Development Center, following his work on wireless communication systems for mobile devices, robotics and vehicles at Apple and Tesla. The group also added Jeremy Ma as Senior Vice-President and Head of AVP Silicon Valley, drawing on his experience in robotics and autonomous systems at Apple, Toyota Research Institute and NVIDIA.

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