Reactions to the Union Budget 2023 have been fast and thick coming. They are appreciative of the Government’s focus on carbon-free environment. On the focus in salaried middle-class who would see a relative rise in their disposable income. If that would materialise into a rise in vehicles sales or be spent towards the high cost of groceries and other such essentials, including the school fees of their children is something that will be clear over a period of time. Time will also tell if the positive intentions of the budget will actually inspire the people of the country to fulfil their aspirations by purchasing a personal set of wheels whose cost has continued to rise and is considered by many to be today at an exorbitant level. While the higher initial acquisition cost of EVs is understandable, that of the fossil-fuel powered vehicles is getting hard to justify even if it were to be adjusted against inflation, mentioned an industry observer. Automotive prices are getting well beyond the purchasing power of a larger section of the aspiring population in India, he added. The overall ownership cost of an automobile has also risen quite some in the last two years. A major chunk of the operating costs is now accounted for by the record high fuel prices. The cost of CNG too is claimed to be high and proving detrimental to the business, according to a transporter who recently bought a few CNG trucks for its fleet in a bid to offset the high operating costs of a diesel vehicle. 

Expressing that he thinks of the Union Budget 2023 to be growth-oriented, Shivaji Waghmare, CEO, Fuji Electric India Pvt Ltd, expressed that it strikes a balance between economic growth and social welfare. “It is great news that the budget has provided INR 350 billion priority capital investment towards energy transition and net zero objectives, and energy security,” he added. Appreciating the move to extend customs duty exemption to the import of capital goods and machinery required for manufacturing of lithium-ion (Li-ion) cells for batteries used in EVs, which would reduce the production cost and lower the cost of EVs, Waghmare said, “The manufacturing credit guarantee scheme for MSME is another laudable step. Youth have to be skilled to compete in Industry 4.0 and a lot of measures are being taken to make Indian youth market-ready,” he elaborated. 

Mahesh Babu - Chief Executive Officer, Switch Mobility Ltd, averred, “The government’s focus on infrastructure with enhanced capex of INR 2700 billion for roads and highways and the budgetary allocation for vehicle scrappage will certainly accelerate the growth of the CV market in India. In the EV sector, the government’s move to provide customs duty exemption for import of specified capital goods and machinery required for manufacture of lithium-ion cells for batteries is a welcome move, that will play a vital role in making local cell manufacturing cost competitive in the long run.” 

Kapil Shelke, Founder and CEO, TORK Motors, mentioned, “The changes in the income tax slab structure have enhanced the purchasing power of the populace. This move will encourage the adoption of cleaner, cost effective means of travel for their daily commute and the availability of FAME-II subsidy will further boost the sales of electric vehicles in the coming fiscal. Additionally, the extension on customs duty on the import of capital goods and machinery for developing lithium-ion cells would also enable EV manufacturers to localise their products in the long term, leading towards reduction in the cost of an electric vehicle for the consumer in the years to come, particularly for a brand like ours that are 95 percent indigenously manufactured in India." 

Venkatram Mamillapalle, Country CEO and Managing Director, Renault India, expressed, “The Union Budget brings cheers to the automobile industry as it will positively give push to sales. The budget has laid special emphasis on vehicle scrappage policy, which will not only boost sales but will also enable in achieving clean and green environment for overall sustainable development. The customs duty exemption being extended to capital goods and machinery required for the manufacturing of lithium-ion batteries used in EVs is a boost for companies that are or would be manufacturing EVs vehicles locally. It will also help reduce the cost of EVs.” 

Anirudh Bhuwalka, CEO, Blue Energy Motors, said, “The government’s focus on green mobility will provide a boost to the automobile sector and other segments which are in line with the mission to provide green solutions. The exemption on the excise duty on GST on compressed biogas and import of capital goods and machinery for batteries used in electric vehicles will propel the growth in the segment and enable industry players to further enhance their productivity. The collective efforts of the government and industry players will help the government achieve its vision to become Net-Zero by 2070.” 

Nemin Vora, CEO, Odysse Electric Vehicles, mentioned, “With the budget announcement completed, we can see the emphasis on this year's budget on wider adoption of Electric Vehicles for public as well as private use. The introduction of the National Hydrogen Mission in India is a huge step towards making the country greener and more sustainable. Government's decision to increase the income tax rebate limit on personal income from INR 500,000 to INR 700,000 in the new tax regime is a welcome step for the middle-class citizens. This step is likely to help the sector as more disposable income with salaried customers may give supplementary push to demand for personal vehicles.” 

Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles, averred, “After passing through a difficult period of lack of good quality” Made in India” EV components for the last 2 years, the local supply chains are beginning to take shape and the increase in customs duty on SKD/CBU is therefore timely as it will further incentivise the local suppliers because of the relative price advantage. There are still many a parts of EV componentry such as lithium cells, permanent magnets for electric motors, semiconductors, etc., that will need to be imported and we expected rationalisation of customs duty on such essential imports help keep the EV prices in check. The continuation of the customs duty-free status for machinery used to produce lithium-ion batteries could result in some stabilisation in battery pricing.” 

Satyakam Arya, Managing Director and CEO, Daimler India Commercial Vehicles, said, “The FY 2023-24 Union Budget shows consistency and an intent for growth. The 33 percent increase in capex outlay underlines the fact that the budget is pro-growth and the increase is to step up on the 7 percent growth achieved in the previous fiscal. Main highlights which stood out for us as a commercial vehicles manufacturer was the eye on digitalization by leveraging 5G, which can help optimize costs and improve efficiency in the sectors it is implemented; the INR 195 billion outlay for green hydrogen development is a step in the right direction for the future of heavy-duty trucks and largely, the logistics industry; INR 350 billion for renewable energy transition projects is also an interesting initiative but how this pans out in the medium term will mark its significance; the PM Awas Yojana that is planned for boosting rural housing would create more jobs and bring more projects for the CV industry.” 

Dr Anish Shah, Managing Director and CEO, Mahindra Group, expressed, “This is an outstanding budget as it is disciplined, growth-oriented, inclusive and sustainable. The steep increase in capex, to the tune of Rs 10 trillion will ensure the continuum of cyclical recovery. Capex spending is good because it has a higher multiplier effect: every Rupee spent on capex has a multiplier of INR 3 as compared to just about INR 0.9 for revenue expenditure. That apart, higher capex also creates jobs in the hinterland. The focus on core infrastructure, including increased funding for railways and clean energy, as well as the government's ambitious plans for the agricultural sector, will help to improve rural incomes. It is encouraging to see the government setting the pace for climate action by announcing a ‘green budget’ that will pave the way for a greener, cleaner planet.” 

Kunal Chandra, Co-Founder, Astro Motors, mentioned, “We are pleased to see the Government's continuing efforts to stay committed to green energy initiatives, making it one of the key points in this budget. The reduction of duties on lithium-ion cells from 21 percent to 13 percent will further boost the domestic manufacturing in India and make it cheaper for Indian consumers to own electric vehicles. The Monterey support in these growth sectors will definitely increase the adoption of electric vehicles at a faster pace and help us on our journey to achieve carbon neutrality." 

Santosh Iyer, Managing Director & CEO, Mercedes-Benz India, averred, “The Union Budget 2023 should drive demand as it focuses on boosting consumption by increasing the disposable income of taxpayers. Further, an increased capital expenditure on infrastructure, particularly roads, should also create demand for the automotive sector. The change in basic custom duties is however going to impact the pricing of some of our select cars like the S-Class Maybach and select CBUs like GLB and EQB, making them dearer. However, as we locally manufacture most of our models, this will not affect 95 percent of our portfolio.” 

Ketan Mehta, CEO and Founder, HOP Electric Mobility, said, “A largely all-encompassing inclusive budget offers something to cheer about for all sectors; emphasis on rural development – where resides the real ‘Bharat’, and Green sustainable climate consciousness is growth focused for a bright future. The Budget will drive economic growth, create jobs and attract investments. Pushing investments in sectors such as agriculture, fishery and cattle, and supporting procurement of components for electric vehicles, and focus on clean energy and fuels like Hydrogen will significantly enhance the prospects of segments that were in need of attention.” 

Of the opinion that an exceptional budget has been presented by balancing the need for sustaining rapid growth, while maintaining an eye on fiscal prudence, Vikram Gulati, Country Head and Executive Vice-President, Toyota Kirloskar Motor, said, “An outlay of INR 10 trillion towards capex which represents 3.3 percent of the GDP and a 33 percent Y-o-Y increase will definitely contribute to a robust economic growth. While doing so, the Government has aimed at a fiscal deficit target of 5.9 percent for the upcoming year with a clear glide path to bring the fiscal deficit below 4.5 per cent of GDP by 2025-26.” “The Budget which not only focuses on inclusiveness, youth empowerment and skill development, but also aims to give impetus to “Green Growth” with sufficient outlays for supporting the recently announced National Green Hydrogen Mission, doubling of allocation for FAME 2 scheme and for providing viability gap funding for Battery Energy Storage System (BESS),” he added.

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L&T Technology Services (LTTS), a leading ER&D company, has announced a strategic partnership with thyssenkrupp Steering to set up a software development centre in Pune.

The partnership will bring together LTTS’ expertise in its mobility segment, dedicated to developing safety-critical software for advanced steering technologies, while thyssenkrupp will bring together its global engineering solutions.

As per the understanding, LTTS will establish and manage the software hub in Pune on behalf of thyssenkrupp Steering.

For the unversed, LTTS has expertise on vehicle engineering to next-gen software innovation, while thyssenkrupp Steering has been developing steering systems for many years. The company possesses a deep knowledge of new electrical/electronic (E/E) architectures and software, as well as strong competence in steering technology. Its activities also extend to forward-looking developments such as the Vehicle Motion Control system, which enables higher comfort, advanced safety and highly autonomous driving through the high-level integration of steering, brakes, drivetrain and dampers.

Richard Hirschmann, SVP R&D, thyssenkrupp Steering, said, “We are excited to partner with LTTS to expand our software capabilities in India. This centre will play a crucial role in driving innovation and delivering next-generation steering solutions to our global customers.”

Patrick Vith, CEO, thyssenkrupp Steering, stated, “We are driven by a clear strategic ambition: to be the most trusted partner for steering solutions worldwide. We aim to shape the future of mobility through innovation, operational excellence, and strong global partnerships.”

Amit Chadha, CEO & Managing Director, L&T Technology Services, said, “This collaboration with thyssenkrupp Steering highlights LTTS’ leadership in the mobility space. Our expertise in electrification, hybrid systems, and software-defined vehicle architectures drives intelligent, sustainable mobility, supported by over 250 programs, 350 patents and 45 labs. By adding a prominent Tier-I automotive partner to our portfolio, this partnership reaffirms our role as the go-to innovation partner for future-ready mobility solutions.

Rajkumar Ravindranathan, Chief Business Officer – EMEA & RoW, L&T Technology Services, said, “We are honoured to be part of this significant milestone in thyssenkrupp’s transformation journey. Through this partnership, and by leveraging our deep expertise in building safety-critical, software-led products, LTTS will deliver scale, faster time-to-market, and cost-effective innovation, enabling thyssenkrupp to sustain and grow its market leadership. The Pune center will serve as a hub for cutting-edge software development, including embedded systems, functional safety and cybersecurity, aligning with the growing demand for intelligent and connected vehicle technologies.”

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Accenture, a leading IT services and Management Consulting organisation, has partnered Centre of Excellence in Advanced Automotive Research (CAAR), a research society established by the Indian Institute of Technology Madras (IIT Madras), to offer specialised skilling programs through Accenture’s LearnVantage Software-Defined Vehicle (SDV) Academy.

Targetted towards automotive Original Equipment Manufacturers (OEMs) and Global Capability Centers (GCCs) the initiative aims to develop talent pool to build software-defined vehicles. The program aims to meet the growing demand for skilled professionals in the SDV domain by bridging the gap between traditional automotive roles and the digital skills needed to develop automated driving technology, advanced driver assistance systems (ADAS), electrical/electronic architecture, connectivity and infotainment systems.

The curriculum covers advanced Internet of Things (IoT), embedded systems and software, vehicle safety, communication protocols, cybersecurity, edge computing, cloud virtualisation and industry standards like AUTomotive Open System Architecture (AUTOSAR) and Automotive Software Process Improvement Capability Determination (ASPICE).    

Kishore Durg, Global Lead, Accenture LearnVantage, said, “As vehicles transform into sophisticated software-defined machines, the automotive industry requires digital-native talent skilled in AI, machine learning, cybersecurity, and safety systems. Our collaboration with CAAR at IIT Madras is a game-changer, focused on transforming talent at scale for OEMs and GCCs in the sector. Together, we are committed to rapidly upskilling and reskilling talent to embrace technological advancements and develop the interdisciplinary skills needed for the SDV landscape.” 

Prof. Krishnan Balasubramanian, Prof. in Charge of Center for Advanced Automotive Research (CAAR), IIT Madras, said, “The academia-industry partnership, enabled by the Center of Excellence CAAR is a unique model that creates a win-win for all parties and enables upskilling of the next generation workforce in new areas such as SDVs. We are delighted to be partnering with Accenture’s LearnVantage.”

Thiruppathy Srinivasan, CEO, CAAR, IIT Madras, said, “The automotive industry is rapidly evolving with the adoption of electrification, connectivity, and advanced smart technologies. The high-growth software-defined vehicle space demands both new digital skills and a larger pool of skilled professionals, making upskilling a top priority. Our collaboration with Accenture LearnVantage offers a synergistic platform to bridge the talent gap by equipping professionals with the competencies needed to thrive and meet the industry’s evolving needs.”  

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German luxury carbrand Audi has officially launched AirConsole's interactive gaming platform in select vehicles, marking a significant step forward in the evolution of in-car entertainment. This integration brings a suite of social games, playable using smartphones as controllers, directly to Audi's infotainment system, aiming to enhance the travel experience for non-driving passengers.

The games were previously limited to parked vehicles, but now in-car gaming in select Audi models can now be enjoyed while the car is in motion, specifically by the front passenger in vehicles equipped with a passenger display. This is made possible through Audi's Active Privacy Mode, a unique digital curtain that prevents the driver from being distracted by the screen.

Anthony Cliquot, CEO at N-Dream, the makers of AirConsole, said, “This is a game-changer for in-car entertainment. With Audi, we’re redefining what’s possible inside a vehicle – bringing gaming into motion and making every journey more social and fun. By enabling gameplay on the passenger screen in a way that prioritises safety – by not distracting the driver – we’re taking a bold yet responsible step toward a future where cars are not just modes of transport, but platforms for shared digital experiences.”

In a notable collaboration with Mattel, Audi and AirConsole are introducing Pictionary Car Party, an exclusive in-car edition of the popular quickdraw game. This launch coincides with Pictionary's 40th anniversary and allows up to four players to connect via their personal devices, transforming road trips into interactive gaming sessions.

Erika Winterholler, Head of Business Development, Digital Gaming at Mattel, said, “We’re thrilled to continue our partnership with AirConsole and work with the team at Audi to bring Pictionary Car Party! to Audi’s infotainment systems. This collaboration is a game-changer, letting non-driving passengers join in on fun, interactive play using their smartphones. Most importantly, the front passenger can safely control the game without distracting the driver, ensuring that entertainment and safety go hand-in-hand. This is the future of social gaming on the move, making every journey more enjoyable.”

Beyond Pictionary Car Party, the AirConsole platform offers an initial selection of 13 additional games spanning various genres, including racing, sports, trivia and party games. Notable titles include Who Wants to Be a Millionaire? from Sony Pictures Television, Overcooked from Team17, and UNO Car Party! from Mattel. Audi passengers can anticipate frequent updates and new content, ensuring an ever-expanding library of interactive entertainment.

Accessing AirConsole is designed to be straightforward. Users can download the AirConsole app directly through the Audi Application Store, which hosts apps specifically optimised for in-vehicle use. Passengers simply scan a QR code displayed on the vehicle’s screen with their smartphone to instantly connect and use their device as a game controller.

The AirConsole gaming platform is now available in the Audi A5, Q5, A6, A6 e-tron and Q6 e-tron model series equipped with Android-based infotainment systems, across all markets where Audi operates.

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German technology major Bosch has outlined its ambition to further continue investments towards development and deployment of artificial intelligence (AI). During the recently held Bosch Tech Day, the company announced that by end-2027 it will invest over EUR 2.5 billion towards AI alone.

In the last five years, the company has filed over 1,500 patent applications in the field of AI, making it a leading innovator globally. The company shared that despite slower-than-anticipated momentum of AI in both assisted and automated driving, it foresees huge potential in the long run.

Going forward, it expects the demand for software, sensor technology, high-performance computers and network components will more than double by mid-2030. This it estimates will account for around EUR 10 billion in sales revenue.

Stefan Hartung, Chairman, Bosch Board of Management, said, “The breakthroughs in AI make it possible to open up completely new chapters in technology, accelerate the development of innovations, and turn these into business.”

In the automotive industry, Bosch has developed expertise in automated driving, for example for visualising the vehicle’s surroundings and route planning. Thanks to AI, the vehicle thinks ahead, anticipates how other road users will behave, and calculates the next steps to get to its destination safely. AI not only ensures greater safety in vehicles, however; it also helps significantly shorten development times for new products. For example, Bosch can draw on a unique database of vehicle sensor data to feed a generative AI solution – and thus train systems much faster and more efficiently. This could pave the way for even more reliable driving assistants and automated driving functions in the future.

The company also expects AI for making manufacturing more streamlined and smart, not only for Bosch factories, but also for its clienteles.

Furthermore, the German technology major is also getting its associates on board. The company through its in-house AI Academy has trained over 65,000 associates since 2019. Nearly 5,000 AI specialists are working on intelligent AI solutions.

“One thing is becoming increasingly clear: a society without AI capabilities will fall behind in global competition,” said Hartung.

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