Automobile manufacturers anticipate announcements from Union Finance Minister Nirmala Sitharaman about the Faster Adoption and Manufacturing of Electric Vehicles (FAME) program, improved production-linked incentive (PLI) programs, and further incentives to support the EV industry.
It is much expected that Union Budget 2024 will include steps with regard to early takeoff of electric vehicles in the country. Auto majors believe that the Union Finance Minister Nirmala Sitharaman is likely to unveil the fresh measures relating to the revival of the FAME scheme, increase in the existing production linked incentive (PLI) plans and more and more incentives for the EV segment.
“The automotive industry has high hopes from the Budget to further advance EV adoption. Among them is an all-encompassing EV marketing program that builds on FAME and prioritizes research and development (R&D). To promote technical developments domestically, more incentives for EV R&D are essential, according to Arihant Capital’s director of research Abhishek Jain.
Thus, the EV industry calls for enhancing new generation production-linked incentive (PLI) schemes for the development of EVs. Import dependency will decrease and local manufacturing will be encouraged by enhancing the performances of PLIs. Jain also opined that meeting these expectations may help India achieve its objectives regarding sustainable transport and place the country on the world map as far as electric cars are concerned through the assistance of the Budget.
Amit Goel, the co-founder and chief global strategist at Pace 360
The effects of the Union Budget 2024 on manufacturing and the electric vehicle industry are highly anticipated. Rather of selecting individual equities, we think investors would be better suited investing in Auto ETFs that concentrate on the manufacturing or electric car industries. These offer diversity and may even present a reduced risk. Investors should also seek out businesses that are well-positioned to gain from budget announcements.
Ruchit Jain, Lead Research, 5paisa.com
The EV industry may grow in the future due to the government’s focus on the adoption of electric transportation and the reduction of emissions. This means that there are Investment opportunities in companies such as Exide, Tata Motors and Mahindra & Mahindra.
Parth Shah, a research analyst at StoxBox
We anticipate that the $10 trillion GDP plan will be built upon the Union Budget for FY24–25. Thus, we expect that the government will place a high premium on concentrating on developing fields like artificial intelligence, EV and EV infrastructure, and semiconductors. As per the anticipated outcomes, we recommend that the attendees seek out stocks that possess robust production capabilities and solid client relationships pertaining to these new fields.
Disclaimer: The views and recommendations above are those of individual analysts, experts, and brokerage firms, not NiftyTrader. We advise investors to consult certified experts before making any investment decisions.
