Budget 2019: As the country is treading closer to Budget 2019, various industry bodies and company spokesmen have come forward with their suggestions veiled as expectations from the Finance Ministry. The Centre has kept its ears open in the past five years and has accelerated various suggestions into policies during its tenure. On these lines, comes a sound advice from Volkswagen India which is asking the government to do a reality check on GST, roll out of BS VI and incentivization of EMV manufacturers.

The leading passenger cars manufacturer believes all regions of the country must receive 24-hours power supply as it is a prerequisite to drive feat for EMVs in India. “For the success of electric vehicles in India, we must ensure that all regions (not limited to metro cities only) receives 24 hr. electric supply. Also, a fast DC charger system as most people do not have a dedicated parking space (a common phenomenon in metro cities). Additionally, adequate charging stations, one in a range of every 3-5kms across cities and highways along with residential and commercial buildings,” the spokesperson of Volkswagen Passenger Cars was quoted by OverDrive website.

Volkswagen also expects the government to come-up with a solid roadmap for the auto manufacturers to venture into EMVs production on a full scale. “Before we think of subsidies on hybrid and electric vehicles, it is necessary for the government to outlay a stable regulatory and taxation framework that supports and incentivizes the manufacturing of electric vehicles in India. As an industry we must realistically understand the willingness of a customer and the value proposition electric vehicles will offer. We sincerely urge the government to prepare a conducive business case for auto manufacturers.” The auto-manufacturer is right to suggest the government to gain manufacturer confidence before announcing subsidies on EMVs.

Ahead of Budget 2019, the company also expects the government to reduce GST on luxury vehicles and SUVs as the Volkswagen India’s major car sales fall into the 28% GST ambit. “This year, the automotive industry is undergoing a major technological transformation as we shift from BS IV to BS VI norms, enhance our safety standards and increasingly prepare towards developing the e-mobility landscape. With increased investments, we urge the government to support and uplift the declining market sentiment by reducing the GST rate and cess applied on luxury vehicles,” stated a company spokesperson, giving a word of caution between lines.