The proposed policy for battery-swapping to promote electric mobility and other initiatives like the PM Gati Shakti National Master Plan for multimodal transport will help in the growth of the overall automobile sector, industry players said on Tuesday.
In a major step to promote EV adoption in the country, Finance Minister Nirmala Sitharaman in her Budget Speech in the Lok Sabha on Tuesday announced that the government will bring a battery-swapping policy to boost the use of EVs in the country and interoperability standards will be formulated.
Hyundai Motors India Managing Director Unsoo Kim said the government's strong approach towards accelerating infrastructure development, sustainability along with digitalisation in every sphere of business will give a strong impetus to the overall economy while empowering consumerism in India.
"The vision for clean mobility creating electric vehicle ecosystem is a positive indicator for the auto industry and for its large supply chain," he added.
Tata Motors Group Chief Financial Officer P B Balaji noted that Budget 2022 is an articulation of purposeful intent enabled by a clear action plan.
"For the Indian automobile sector, which is a significant contributor to the nation's GDP, the Budget offers continuity and also additional opportunities to drive multi-year growth," he noted.
Specifically, the robust increase in capex (capital expenditure) by 35.4 per cent to Rs 7.5 lakh crore and a comprehensive investment plan for infrastructure are significant growth boosters, Balaji stated.
"Additionally, the launch of the well-conceived PM Gati Shakti programme for multimodal transport, including 100 cargo terminals and investments in 25,000 km 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," he said.
Mahindra and Mahindra Executive Director (Auto and Farm) Rajesh Jejurikar said the road map laid out to usher in sustainable mobility by the finance minister in the Union Budget 2022-23 will bolster the electric mobility adoption in India.
"Battery-swapping can offer a practical alternative to increase the adoption of electric vehicles. As part of our last-mile mobility, we look forward to working with the government, policymakers and our partners to formulate and implement the battery swapping policy," he added.
Similarly, TVS Motor Company Chairman Venu Srinivasan said the big boost to capital expenditure is welcome and it will give a fillip to the Indian economy.
"For the automobile sector, we welcome the 'PM Gati Shakti Master Plan' focusing on building world-class infrastructure and improved connectivity for commuters.
"In the electric mobility space, we strongly support the measures undertaken by the government to promote clean and green mobility, mainly introducing the battery-swapping policy that will be instrumental in supporting an efficient EV ecosystem," he noted.
Mercedes-Benz India Managing Director and CEO Martin Schwenk said the battery-swapping announcement is in the right direction and will be helpful to a limited segment.
"We, however, need a broader holistic view on the strategy around developing electric mobility for the passenger vehicle segment.
"A mid-to-long-term planning for demand creation is needed and we hope the fine prints will have a ripple effect and passively stimulate growth for the auto industry," he added.
Industry body ACMA President Sunjay J Kapur said the direction for the creation of urban fossil-fuel-free zones, policy for battery swapping and energy-as-a-service, and incentives for creating a vibrant start-up ecosystem can enable India to soon emerge as a forerunner of green mobility solutions for the world.
Automobile dealers' body FADA President Vinkesh Gulati said battery-swapping and energy-as-a-service (EAAS) will surely help accelerate the transition towards clean mobility.
"The development of special mobility zones for electric vehicles and promoting clean technology for public transport validate the government's commitment to e-mobility," he added.
JK Tyre & Industries Chairman and Managing Director Raghupati Singhania said 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 clean-tech and electric vehicles will help faster evolution of the EV (electric vehicle) segment in India," he added.
Automotive Tyre Manufacturers Association (ATMA) Chairman Anshuman Singhania said the increased outlays in the road sector and infrastructure development augurs well for the tyre industry.
