Union Budget 2025: Not just a reduction in GST, the auto sector has these expectations from the budget

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Nirmala Sitharaman will soon present Budget 2025 for 2025-2026 and this time different industries have many expectations from the budget. Today we will tell you what are the expectations of the auto industry from Union Budget 2025 and whether the companies expect any relief from the government in the budget this time or not.

The number of people buying new cars has increased rapidly in India. The government also wants to get India recognized as an auto manufacturing hub at the global level, apart from this, something special can be seen in the budget this time to promote green mobility. Let's know what are the expectations of auto companies from the budget.

GST on Hybrid-Electric Vehicles

Auto companies demand that in this year's budget, the GST Council should reduce the GST on hybrid and electric vehicles from 28% to 18%. If this happens in this year's budget, more and more customers can switch to electric vehicles, which will also help the government's dream of a green future come true.

The benefit of PLI scheme in EV components

Auto companies demand that the government should also provide the benefit of production linked incentive scheme in electric vehicle components and battery manufacturing. If the government thinks about this in the budget, then this step will also fulfill India's dream of establishing itself as a global hub in EV production.

Incentives for Vehicle Scrapping

This time, it is expected from Budget 2025 that the government will provide more clarity in this matter regarding vehicle scrapping. Along with this, an incentive program will be started to encourage people to scrap vehicles, which will also increase the demand for new vehicles. It is too early to say anything right now, you will get the answers to all these three questions in the budget to be presented on 1 February 2025.