2024 Interim Budget: What Was In Store For Auto Sector

Ahead of the 2024 Lok Sabha elections, Union Finance Minister Nirmala Sitharaman presented the Interim Budget today. Although, there will be a full-scale EV budget presented again later in July this year, the interim budget gave an idea of how the budget of the country will function in the upcoming days, and also for the 2024-2025 FY. 

While there were no major announcements as such, the Goverment’s intention with regards to the automotive sector was crystal clear - EVs growth should be boosted. 

The finance minister announced that the Indian government will support manufacturing and EV charging infrastructure. She also further added that the electric vehicle ecosystem will be further expanded in the coming days in the country. 

Although there was no clear indication as to Government intends to distribute sops for the automobile manufacturing sector, or the EV industry. The minister did pronounce that entrepreneurship opportunities to a large number of vendors for supply and installation, employment opportunities for youth with technical skills in manufacturing, installation and maintenation will be encouraged. However, no clear roadmap for the same was laid out with the interim budget. 

No Announcement On FAME Subsidies

However, the interim budget did not mention anything about extension of FAME subsidies. With a focus towards faster adoption for EVs, the automotive industry was awaiting with baited breath for announcement on the same. However, the government did mention that funds will be allocated to replace government vehicles, like public buses, with electric buses.