In an interaction with PTI, Arora said the GST reforms introduced last year have led to the revival of the domestic passenger vehicle industry.
“And from that point of view, it would help if there are some key EV tasks that can be addressed in the future (in the budget). Continuity is extremely important for our sector, along with further focus on infrastructure growth and building the EV ecosystem,” he said.Moreover, reforms in customs taxes would help multinationals manage both exports and imports, Arora said.
On regulatory issues, he pointed out that there has been a delay in the final notification of the latest Corporate Average Fuel Economy (CAFE) standards, and said a clear roadmap and consistency between technologies would be a welcome step.
On the India-EU FTA, Arora noted that it could provide opportunities for brands like Skoda, Volkswagen, Audi, Porsche and Bentley. “The bilateral trade agreements help bring products and technologies to the relevant market much faster,” he added.
“We have always been in favor of bilateral trade agreements…The auto industry is one of the cornerstones of the India-EU trade agreement…we believe that if we have a bilateral trade agreement, it will give us an opportunity as a group,” Arora said.
But at the same time, the group’s strategy is local for local and developing products in India, for the Indian market and exports, he added.
“So volume boost for us will come from this strategy, but at the same time we can create opportunities for customers to look at some of the global products at reasonable prices. We can introduce new technology, bring certain products to the enthusiasts,” he said.
Elaborating on the group’s focus on localization, he noted that the strategy is to develop products in India with deep localization, serving both domestic and export markets.
“From the very beginning, we have engaged engineering skills and supplier communities in India. Exports to Vietnam of Indian-developed cars is one such example,” he said, adding that the company will continue to build products relevant to Indian consumers while leveraging export opportunities.
Arora said the Skoda brand sold a record one million cars globally last year, with India becoming one of its key markets alongside Germany, the Czech Republic and Britain.
He noted that the overall passenger car market is expected to grow by 5 to 6 percent by 2026, with Skoda Auto Volkswagen aiming to capture greater market share through the launch of new products.
Arora said electrification remains an area of ​​focus as electric vehicle penetration in India is still low.
“Price parity between alternative fuel and electric vehicles, charging infrastructure and range concerns are factors that will determine the pace of adoption,” he said, noting that the group is looking for an electric car that could be introduced to the market. PTI
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