Auto Inc Welcomes Push For Infra Development, Enhanced Capex, And Battery Swapping Policy

The 2022 Union Budget announcement comes as a huge relief for those who were sitting on the edge of their seats expecting support that will transform the country. It did not disappoint. Amongst the many announcements made, one highlight was the government’s support for the automotive industry, especially the support the government has extended towards the EV industry. The battery-swapping policy was a welcome move. 

In regards to the announcement, many industry leaders have shared their joy, in welcoming this policy. To better understand what the industry says about the policies passed and the 2022 Union Budget, here are some quotes from top industry experts. 

P B Balaji, Tata Motors

“The robust increase in capex by 35.4% to Rs. 7.5 lakh crore and a comprehensive investment plan for infrastructure is a significant growth booster. Additionally, the launch of the well-conceived PM Gati Shakti program for multi-modal transport including 100 cargo terminals and investments in 25000 Kms of highways, apart from investments in ports and metros is an excellent development that will help create a world-class transport infrastructure in the country.”

Dr Raghupati Singhania, JK Tyre & Industries

“The expansion of the highways network will have a positive impact on the automotive sector. In addition, the announcement of a battery swapping policy and push for cleantech and electric vehicles will help faster evolution of the EV segment in India. Further, support for new tech development in various areas of the electronic sector will go a long way in decreasing the dependence on imported tech and help domestic firms.”

Sanjay Gupta, NXP Semiconductors

“The Union Budget 2022 has recognized the digital growth of the country as a primary focus. To promote cleaner mobility, the battery swapping policy and interoperability standards that the government plans to introduce incorporate the concept of energy/battery as a service. This will also help in developing the charging station ecosystem which is imperative for the massification of EVs.” 

Chetan Maini, SUN Mobility

“Battery swapping technology addresses key challenges around upfront cost, range anxiety and long charging time enabling faster adoption of EVs. As the policy unfolds, it would be great to see the govt addressing key points around how customers can access subsidies (currently available for EVs), range per charge criteria (as swap batteries, by definition, are smaller and with less range) and GST for swapping services in line with EVs.”

Manish Bhatnagar, SKF India

“We are excited to see announcements under the ‘Battery Swapping policy’, supporting cleantech in urban mobility space. PM Gatishakti plan of expanding national highways by 25,000 will act as a catalyst in seamless mobility, employment generation, and efficient connectivity across the nation. We welcome FM’s announcement on cutting down import duties on metals including steel and aluminium.”

Inderveer Singh, EVage Ventures

“Exclusive EV zones will also be a positive step towards accelerating EV adoption in India. Though it did not find any mention in this budget, we continue to be optimistic about seeing steps towards EVs getting faster access to loans in the PSL scheme.”

“There is a strong need for a government-mandated standard, defining the residual value for EVs. The absence of this standard is one of the biggest hindrances in acquiring affordable financing to fleet operators and commercial EV manufacturers.”

Kamal Bali, Volvo

“Focus on logistics will help solve supply-side challenges and curb structural inflationary challenges. Public transport, urban infrastructure push, and inter-operable battery swapping policy are big positives. Extension of ECLGS credit guarantee to MSME and hospitality sectors is a welcome step.”

“Great to hear the mention of sustainable solutions in public procurement policy with due credence to clean & green tech, quality, and cost (instead of simply L1 approach). The Capex of 7.5 lac crore (if implemented with speed) will have a huge multiplier effect on jobs and will further kick in a virtuous cycle of consumption growth.”

Raghu Gullapalli, Accenture

“The intended introduction of a Battery Swapping Policy is a welcome move as it could encourage stakeholders in the value chain to devise innovative business models which reduce the lifestyle cost of EVs. This combined with the focus on interoperability which will help address ongoing range and battery depletion concerns could boost EV adoption in the country.”

Anil Kumar, SEG Automotive India

“Offering energy as service and battery swapping can lead to new innovative business models, making electric mobility more attractive on TCO, by reducing the acquisition cost of the vehicle. The robust allocation of capital expenditure is a good sign for the infrastructure, manufacturing and commercial vehicle sector. The credit schemes for the MSME, and reduction in duties for a few commodities is a much-needed move, for the industry to stay competitive.”

Sandeep Kalia, Valvoline Cummins

“While there are no immediate implications for the commercial automobile industry, the budget surely helps boost the EV segment that will help redefine the automobile industry in the medium to long run. With battery swapping being at the core, this year the aim is to increase EV battery production and development which will provide incentives to the private sector.”

Raj Mehta, Greta Electric Scooters 

“As India moves towards the EV revolution, it will boost participation in enabling battery-swapping stations and technology. This policy will encourage EV players to rent batteries quickly and economically. We expect the government to continue the PLI scheme for the EV sector. The extension of tax benefits will boost more startups in the battery swapping businesses.”

Aneel Gambhir, Blue Dart

“The Government’s focus on consistently investing in infrastructure development across the country bodes well for the Indian economy and more specifically for the logistics industry. The focus on public investments, by expanding the National Highway network by 25,000kms, the Gati Shakti masterplan with seven engines, 100 new cargo terminals, will give an impetus to the growth of the industry and help bring efficiency in logistics operations.”

Shubhankar Chaudhry, One Moto India

“Creating a balance between supply and adoption was a long-stalling challenge for every player. Imagine, when the consumer is ready to buy an EV but is hesitant due to the absence of charging infrastructure. This could not have been achieved without ample government support towards creating the right infrastructure and fueling the adoption at consumers’ end.”

Arunabha Ghosh, CEEW

“When the energy transition and climate action become one of four pillars of the Budget speech, it sends a strong signal of the government’s intent to drive economic growth and employment through sunrise sectors focused on sustainability. The Finance Minister declared that the government would promote cleaner technologies such as solar energy, sustainable mobility, and sustainable agriculture.”