ACMA Mobility Foundation, KPMG Discuss Taxation and ESG Reforms for India's Automotive Sector

The ACMA Mobility Foundation (AMF), in collaboration with KPMG, organised a conference titled "Decoding Taxation & ESG: Preparing Businesses for India's Evolving Regulatory Environment". The forum addressed critical issues surrounding emerging regulatory frameworks, tax reforms and the incorporation of Environmental, Social, and Governance (ESG) principles within the automotive industry.

Dr. Hanif Qureshi, IPS, Additional Secretary at the Ministry of Heavy Industries, Government of India, attended as Chief Guest. Other notable participants included Vikrampati Singhania, President of ACMA and Managing Director of J.K. Fenner (India) Ltd., Vinnie Mehta, Director General of ACMA, and Prashant Verma, Executive Vice President of Supply Chain at Maruti Suzuki India Ltd.

Singhania highlighted ACMA's progress in sustainability initiatives, noting that the organisation has certified over 200 ESG champions across the component sector through dedicated cluster programmes. He identified tax rationalisation and ESG adoption as key factors for industry competitiveness and credibility as India approaches 2047.

Dr. Qureshi outlined the government's efforts to create a predictable policy environment. He stated that recent tax reforms have improved efficiency in the automotive sector, particularly benefiting MSMEs by addressing compliance complexities. The government aims to position India as a global hub for sustainable and intelligent mobility solutions by 2047, aligning with the vision of Viksit Bharat.

Mehta emphasised the sector's evolution beyond scale, focusing on trust and relevance in global supply chains. He noted that evolving tax frameworks and ESG expectations require the industry to prioritise transparency, cost competitiveness, and responsiveness.

The conference included sessions on taxation, regulatory outlook, and ESG transformation, featuring speakers from KPMG India, BSR & Co. LLP, BMW India, Tata Motors, Anand Group, and ARAI. These sessions examined the alignment of fiscal policy with sustainable business practices.

The ACMA Mobility Foundation reaffirmed its commitment to collaborating with government, industry, and knowledge partners to develop a transparent and sustainable automotive ecosystem aligned with India's growth objectives.

The conference underscored the automotive component industry's recognition that regulatory compliance and sustainability credentials have become essential competitive differentiators in global markets. With international buyers increasingly demanding ESG compliance and transparent supply chains, Indian manufacturers are positioning themselves to meet these evolving standards.

The emphasis on MSME support through simplified tax compliance reflects the sector's acknowledgment that smaller enterprises form the backbone of India's automotive supply chain and require targeted assistance to navigate complex regulatory landscapes.