Union Budget 2022-23 Brings Disappointment For Automobile Sector

 

The 2022-23 Union Budget is out and despite the automobile sector reeling under pandemic induced supply chain issues and high taxation, there wasn't any relief provided to the sector. Although the budget did give a push to the electric vehicle (EV) development and brought more clarity towards the government's thinking and policy for EVs. The finance minister Nirmala Sitharaman gave two big announcements for the automobile sector. The first announcement was about framing a policy that will allow battery swapping for EVs. Under this, you can simply drive into a charging station and swap out your depleted battery with a charged one thus reducing the wait time. 

(Image Courtesy: Hyundai Motor Group)

Second, the finance minister laid emphasis on the development of innovative business models for EVs and battery-related technology by the private players. And that's all which we had for anything related to the auto sector in the budget. That said, there was a piece of bad news though for the petrolheads. Come October 2022 and the unblended fuel will have an additional Rs. 2 per liter surcharge added to its final cost. This comes in the hindsight of transport minister Nitin Gadkari's push for increasing the ethanol blending percentage in the fuel to reduce India's outlay of foreign currency (US Dollar) in crude oil import.

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