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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Coretura, a 50:50 joint venture between Daimler Truck and Volvo Group, has entered into an engineering agreement with Accenture to accelerate the development of a software platform for commercial vehicles.

The company, headquartered in Gothenburg, Sweden, currently employs over 100 engineers. It continues to recruit specialists in system architecture, high-performance computing and cloud infrastructure to support its roadmap, which targets the delivery of its first commercialised products towards the end of the decade.

Coretura intends to create a single software platform, language and standard for trucks, buses and other heavy-duty transport vehicles. The platform is designed to support vehicle lifecycles of more than 15 years, moving the industry away from projects that require custom software development for each new vehicle.

As the engineering partner, Accenture will support development across several areas, including:

• Electrical and Electronic (E/E) architecture
• Software abstraction and hardware integration
• Embedded software, middleware, and cybersecurity
• Functional safety and cloud infrastructure

The platform aims to provide a reusable software stack to lower costs and standardise time-to-market for global manufacturers. For fleet operators, the system is designed to allow for continuous software updates and performance upgrades delivered over the air.

Johan Lunden, CEO, Coretura, said, “Our purpose is to advance mobility at the speed of ideas, and that takes depth. Building a full-stack SDV platform demands expertise across embedded software, middleware, cybersecurity, and functional safety, all designed for vehicles with lifecycles measured in decades. Accenture’s reinvention capabilities let us move faster without compromising the standards our customers depend on. This is acceleration, not course correction.”

Rainer Oder, SDV Embedded Software Lead, Accenture, added, “Helping the industry advance software-defined vehicles is a priority for Accenture. Our landmark collaboration with Coretura is designed to change embedded software engineering for automotive platforms. Together, we are looking to solve the challenges of a fully software-defined architecture – addressing critical areas such as hardware abstraction, API management and AI-based engineering optimisations.”

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The ePlane Company has announced the completion of its full-scale electric vertical takeoff and landing (eVTOL) aircraft, the e200X. Designated PT-01, the prototype has successfully integrated all core subsystems into a single structure, marking the transition from design and simulation to physical testing.

The e200X is designed as a single airframe versatile enough to serve three distinct markets – Passenger Air Taxi, Urban Cargo Carrier and Air Ambulance.

The company emphasises that the aircraft was designed to be compact, allowing it to integrate into existing urban infrastructure without requiring significant city redesigns.

Developed at the company's own facilities in Chennai, the e200X features in-house development of major components, including propellers, airframe structure, landing gear and battery pack.

This vertical integration provides the company with control over performance, manufacturing costs, and iteration speed, having reached this milestone on approximately USD 21 million in funding.

With assembly complete, the e200X will now undergo ground testing, flight testing and certification.

Prof. Satya Chakravarthy, Founder, The ePlane Company, said, "We set out to build an electric aircraft to a world-class benchmark, engineered and manufactured in depth in India for the World.  We deliberately designed the e200X to be compact, because an aircraft that asks a city to rebuild itself around it will not solve the problem it was built to solve. The same airframe can move people as an air taxi, carry goods as a cargo aircraft, and save lives as an air ambulance, and it can do all three using the infrastructure cities already have. That combination of real capability and capital efficiency is how we intend to compete, and win, in markets around the world.”

The company’s board includes prominent figures such as Vishesh Rajaram (Speciale Invest), Eash Sundaram (JetBlue) and Aditya Ghosh (Homage, Akasa Air). The venture, incubated at IIT Madras, has also received international recognition, including being showcased at Bharat Innovates 2026 and featured in Nvidia Founder Jensen Huang’s GTC keynote.

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Chinese technology company Xiaomi has marked a new milestone for its automotive product offering with its electric vehicle.

The company has announced a significant milestone in autonomous vehicle technology by completing the first official autonomous lap of the Nurburgring Nordschleife circuit in Germany with the Xiaomi YU7 GT, equipped with a Track Package, navigating the 20.8 km circuit without a human driver, recording a lap time of 10:29.483.

Following this performance, the Nurburgring has introduced a new official vehicle category: Autonomous Driving (under Electric Vehicles).

The Xiaomi YU7 GT autonomously navigated all 73 corners of the Nordschleife, managing 300 metres of elevation change and varying road surface conditions. The performance was driven by Xiaomi’s autonomous driving system, which integrates the Xiaomi XLA architecture and the MiMo-Embodied foundation model introduced in March 2026. The end-to-end architecture enabled the vehicle to coordinate steering, braking and power delivery in real-time, maintaining stability under high-speed and high-load conditions.

Xiaomi’s autonomous driving programme has evolved since the 2024 launch of Xiaomi HAD. The current system moves beyond simple behaviour imitation toward autonomous decision-making and deeper environmental interpretation. The company stated that the Nurburgring project serves as a critical testing ground to collect data for refining vehicle dynamics modelling, control strategy optimisation and safety redundancy mechanisms.

This achievement underscores Xiaomi’s commitment to advancing artificial intelligence in the automotive sector through rigorous real-world validation.

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QuantumScape Corporation has announced a multi-year joint research agreement with Honda R&D Co., a subsidiary of Honda Motor Co.

The collaboration focuses on advancing QuantumScape’s solid-state lithium-metal battery platform, including the development of associated manufacturing processes.

This agreement follows a successful technology evaluation period during which Honda conducted a technical study and competitive benchmarking of QuantumScape’s battery platform.

Atsushi Ogawa, Chief Operating Officer, Research Center of Excellence, Honda R&D Co, said, “QS technology demonstrated compelling and unique advantages during our evaluation. We see potential for QS technology to add value across a range of applications, including automotive, and we are excited to move forward into the next phase of our partnership.”

Dr. Siva Sivaram, CEO and President, QuantumScape, added, “Honda is a leading global automaker renowned for its engineering excellence and product quality across automotive and other applications worldwide, and its evaluation represents one of the most rigorous assessments of our technology to date. This agreement reflects the growing confidence in QS solid-state lithium-metal batteries to enable safer, higher-density energy storage.”

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