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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Epsilon Advanced Materials (EAMPL) has developed a hard carbon anode material designed for sodium-ion batteries used in grid-scale Energy Storage Systems (ESS). Developed through internal research and development, the graphite-free material provides an alternative for cell manufacturers as sodium-ion chemistry gains adoption due to the abundance of sodium and its lower environmental footprint compared to lithium extraction.

The material utilises coconut shell waste as its primary carbon precursor. Through pyrolysis and high-temperature carbonisation, this agricultural byproduct is converted into a disordered carbon structure with the interlayer spacing and nanopore architecture required for sodium-ion storage.

This bio-based manufacturing process eliminates dependence on graphite and reduces carbon dioxide emissions by up to 50 percent compared to standard graphite anode production due to lower processing temperatures.

The microarchitecture of the hard carbon anode provides reversibility, cycle life, and charge-discharge capabilities required for grid applications undergoing repeated charge cycles.

The product launch follows commitments to sodium-ion cell production by global manufacturers, including CATL, alongside expanding research by cell manufacturers across Asia and India seeking components for energy storage systems.

Vikram Handa, Managing Director, Epsilon Group, said, “The clean energy transition needs materials that are affordable, available and easy to scale, faster. Sodium-Ion is the right chemistry for energy storage and Hard Carbon is the right anode for it. The feedstock is something India has in abundance, the process is cleaner than anything that came before it, and the performance is where it needs to be for real-world grid applications. We are building for what energy storage will look like ten years from now.”

The introduction of the hard carbon anode is part of Epsilon Group's expansion into battery materials, which also includes silicon-graphite anodes and Generation III Lithium Iron Phosphate (LFP) cathode active materials for lithium-ion applications. The expansion aims to establish manufacturing and export capabilities for battery components within India to support energy storage and electric vehicle sectors.

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French automotive supplier Valeo has been nominated by a major Indian automotive manufacturer to supply its Valeo Smart Safety 360 (VSS360) system for commercial vehicles.

The advanced driver assistance system (ADAS) is designed specifically for the Indian market and will be produced at Valeo's manufacturing facility in Sanand, Gujarat.

The VSS360 is a ‘one-box’ ADAS solution that integrates radar fusion directly into a smart front camera. This design allows vehicle manufacturers to remove individual Electronic Control Units (ECUs), reducing costs and simplifying integration into existing vehicle architectures.

A significant technical feature of the system is the Univolt Camera, which is compatible with both 12V and 24V electrical architectures, allowing it to be used in vehicles ranging from Light Commercial Vehicles (LCVs) to heavy-duty trucks.

The system utilises three radars and one camera to provide a suite of safety and comfort functions, including:

• Moving Off Information System: Protects pedestrians and cyclists during vehicle pull-away.
• Blind Spot Information System: Monitors side zones for vulnerable road users.
• Standard ADAS Functions: Includes Forward Collision Warning, Automatic Emergency Braking, and Lane Departure Warning.
• Driver Monitoring: Software that detects driver drowsiness and fatigue to mitigate accident risks.

The system has been tailored to meet upcoming General Safety Regulations in India and handles unpredictable traffic conditions common on Indian roads. It also supports over-the-air (OTA) updates to maintain software performance throughout the vehicle's lifecycle.

Marc Vrecko, CEO, Valeo Brain Division, said, "This award demonstrates how our high-end ADAS technology can perform in the world’s most demanding environments while drastically improving road safety. India is a cornerstone of our 'Elevate 2028' strategy and Valeo is committed to providing high-tech, scalable, and cost-optimised safety solutions that meet the specific requirement of Indian roads."

Jayakumar G, Group President & Managing Director, Valeo India, added, "This award marks an important milestone in expanding our ADAS portfolio in the commercial vehicle segment in India. By localising these advanced solutions, we aim to deliver highly competitive products tailored to our customers’ needs. Regulatory momentum is a key driver accelerating ADAS adoption and supporting our journey towards safer and smarter mobility in India."

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Hyundai Motor Group has expanded its Center of Excellence (Hyundai CoE) in India by forming a consortium with 7 universities to conduct research into battery and electrification technologies.

This initiative adds IIT Kanpur, IIT Hyderabad, VNIT Nagpur and Tezpur University to the existing partnership established in 2025 with IIT Madras, IIT Delhi and IIT Bombay.

The Group is managing 39 joint projects through these institutions, focusing on battery cell safety, energy density and diagnostic systems. Research is specifically directed toward battery designs and materials intended for the Indian environment.

Technical work also includes the development of an AI-powered Vehicle-to-Grid (V2G) platform and advancements in Battery Management Systems (BMS).

To facilitate technical exchange, the Group has introduced a Korea Visiting Programme for researchers and a series of global conferences and forums. These programmes are designed to connect government, industry, and academic leaders to discuss emerging electric vehicle (EV) technologies and share technical insights between India and Korea.

Chang Hwan Kim, Head of the Electrification Energy Solutions Tech Unit, Hyundai Motor Group, said, “By bringing together the distinguished professors and emerging researchers from these seven institutes, we can create powerful synergies that will yield immense value for both Hyundai and India's sustainable growth. I strongly believe that the Hyundai CoE will grow to become the premier expert network of the Indian academic community”.

The long-term objective of the project is to establish a research hub that provides solutions for the domestic automotive industry and supports the transition to electric mobility through local talent and institutional expertise.

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NXP Semiconductors has announced a collaboration with Quanta to launch a deterministic zonal networking solution designed for next-generation Software-Defined Vehicle (SDV) architectures.

The platform combines NXP’s S32 automotive processing platform with TrustMotion’s MotionWise middleware to provide predictable, real-time communication across vehicle networks.

The solution is engineered to solve a primary challenge for automotive manufacturers: ensuring precise timing across distributed compute and network components. By providing end-to-end determinism, the platform reduces the risk of errors during late-stage system integration.

The solution features an automated workflow for topology discovery and schedule generation designed to accelerate SDV program timelines. It combines NXP S32 processors, SJA1110 TSN-enabled switches and multi-PMIC power management into a single, validated system.

It provides low jitter and predictable latency across Electronic Control Units (ECUs) and in-vehicle networks, supporting Quality of Service (QoS). Thus making it scalable to support latency-sensitive applications including audio over Ethernet, high-performance compute (HPC) integration and real-time control.

Sebastien Clamagirand, SVP and GM, NXP Semiconductors, said, “Software defined vehicles require a fundamentally different approach to vehicle architecture – one that delivers deterministic timing across both compute and network at scale. We are helping OEMs overcome the limitations of legacy architectures, reduce integration risk and accelerate development of scalable zonal systems.”

Terrisa Chung, Vice-President and General Manager, Quanta, added, “Quanta’s Adaptive Zonal System is designed to deliver deterministic performance and system level scalability for next generation vehicle platforms. Working with NXP, we’re providing a ready to deploy foundation that helps our customers move faster while meeting strict timing, safety, and reliability requirements.”

The partnership aims to streamline the transition from domain-based designs to zonal E/E systems. NXP and Quanta have also confirmed they are working toward aligning this solution with the NXP CoreRide zonal reference system to support broader SDV integration in future vehicle programs.

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