Quote on Auto sector by Arun Agarwal, Vice President – Fundamental Research, Kotak Securities Limited
“In line with Government’s vision on promoting clean energy, the budget focused on supporting domestic manufacturing and the development of the electric vehicle ecosystem in the country. Accordingly, customs duty exemption was extended to import of capital goods and machinery needed for manufacture of lithium-ion cells for batteries used in electric vehicles. Lower cost of batteries will make electric vehicle’s more affordable. In the budget speech, the Finance Minister also announced allocation of funds to scrap and replace old vehicles of the central government and also supporting States in replacing old vehicles. Further, reducing tax burden under the new tax regime will increase disposable income and may aid recovery in entry level segments in the automobile industry.” – Arun Agarwal, Vice President – Fundamental Research, Kotak Securities Limited