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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Maruti Suzuki India, the country’s largest passenger vehicle manufacturer, has announced the second phase expansion of its Integrated Traffic Management System (ITMS) in Gurugram under its corporate social responsibility initiative, allocating approximately INR 750 million to the project.

The expansion will see the installation of 1,000 additional radar-integrated cameras across 70 junctions and nine road stretches covering 65 kilometres in the city. Combined with the initial phase, which deployed 400 cameras across 23 junctions, the completed network will encompass 1,400 cameras across 93 junctions and 13 road corridors.

Implemented in partnership with the Gurugram Metropolitan Development Authority and the Gurugram Police, the automated system detects traffic offences including speed limit violations, red-light jumping, helmetless riding, triple riding and wrong-side driving. The camera units record registration plate details and transmit data directly to the Integrated Command and Control Centre for enforcement processing.

Sibash Kabiraj, Commissioner of Police, Gurugram, said, "We appreciate Maruti Suzuki’s continued support in strengthening Gurugram’s traffic management infrastructure through its CSR initiative. The expansion of the Integrated Traffic Management System will further strengthen our ability to monitor traffic violations, enable timely enforcement, and encourage greater compliance with traffic regulations."

P C Meena, CEO of the Gurugram Metropolitan Development Authority, said, "GMDA is committed to building a robust, technology-driven surveillance network to strengthen traffic management and road safety across Gurugram. The expansion of CCTV coverage in collaboration with Maruti Suzuki India Limited and Gurugram Police will enable more effective traffic monitoring, strengthen enforcement of traffic rules and promote greater road discipline. Connecting the CCTV network with GMDA’s Integrated Command and Control Centre will further enhance real-time surveillance, improve coordination among enforcement agencies and facilitate quicker action against traffic violations, contributing to safer roads for all commuters."

Rahul Bharti, Senior Executive Officer of Corporate Affairs, Maruti Suzuki India, said, "We are pleased to further strengthen our partnership with GMDA and the Gurugram Traffic Police in advancing road safety through technology-driven interventions. This advanced tracking system addresses issues like riding without helmets, triple riding, red-light violations, over-speeding, and wrong-side driving. These violations highlight a critical road-safety challenge, as human error continues to be the leading cause of road accidents in India. The findings reinforce the need for sustained, collaborative efforts to improve compliance with traffic regulations and foster safe road behaviour. Improving road safety requires a combination of responsible driving, robust driving license testing and effective traffic enforcement. We are committed to working alongside authorities in these areas to build a safer mobility ecosystem."

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Swedish automotive company Volvo Cars has expanded its technology partnership with NVIDIA to integrate the computing firm's Hyperion sensor and compute architecture into its next-generation vehicle platform.

The system combines Volvo's vehicle safety architecture with NVIDIA's hardware, Halos operating system and Alpamayo Stack driving software. The technology is designed to navigate highway environments, urban traffic and parking scenarios, laying the foundation for the gradual introduction of eyes-off and mind-off driving capabilities. The system will make its commercial debut in an upcoming production model as part of Volvo Cars' vehicle development roadmap.

Hakan Samuelsson, President and CEO, Volvo Cars, said, "Volvo has been synonymous with car safety for almost 100 years. By working with NVIDIA, we bring together two distinct strengths: industry-leading safety knowledge and world-class AI technology. That combination gives us a unique opportunity to create safer and more attractive cars for our customers."

Jensen Huang, Founder and CEO, NVIDIA, said, "Accelerated computing has transformed the car into an intelligent machine that can understand the world around it. Volvo has spent nearly a century protecting people on the road. Together, we’re combining Volvo’s extraordinary vehicle safety systems with NVIDIA Hyperion and Halos to build a new generation of cars that make driving safer and more effortless."

The agreement marks a continuation of the collaboration between the two companies, which established their initial development partnership in 2017. The deployment of NVIDIA's computing stack will support Volvo's transition toward software-defined electric vehicles across its global product lineup.

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French tier 1 supplier Valeo and open science research lab KE:SAI have launched a joint research collaboration to develop a generalist artificial intelligence (AI) driving system for autonomous vehicles. The partnership plans to publish models, code, weights and datasets as open-source resources.

The initiative brings together artificial intelligence teams from valeo.ai in Paris and the KE:SAI founding team in Tübingen, Germany. The collaboration focuses on training a unified AI model capable of operating across different vehicle platforms, sensor configurations and geographic environments. Initial development will utilise large-scale real-world driving data before integrating reinforcement learning within simulated environments to address rare driving scenarios.

KE:SAI was co-founded by research organisation Kyutai and the ELLIS Institute Tübingen. By making the underlying code, benchmarks and model weights accessible, the initiative aims to provide automakers, component suppliers and academic laboratories with a standardised reference system for autonomous driving research and development.

Marc Vrecko, CEO, Valeo Brain, said, "This open-science collaboration with KE:SAI marks a strategic milestone for Valeo and the broader European automotive ecosystem. By combining our deep industrial and technological expertise in autonomous driving with world-class open-source research, we are establishing a shared foundation to accelerate the development of physical AI and democratize next-generation self-driving technologies."

Andreas Geiger, CEO, KE:SAI, said, "For language models, open source compressed years of progress into months, yet frontier physical AI is still largely closed. Valeo shares our belief that open foundations create more innovation than any closed system ever could. Everything we develop will be open. Every step forward is a step forward for everyone."

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Researchers at Chalmers University of Technology, in collaboration with industry partners, have published a study in Nature Communications demonstrating that reconfigurable battery pack architectures can extend electric vehicle battery operational life by more than 20 percent under specific conditions.

In conventional electric vehicle battery packs, cells are wired in a fixed series configuration, meaning the weakest cell dictates the overall capacity, performance and lifespan of the entire pack. The architecture evaluated by the Chalmers engineering team uses integrated electronic switches and a centralised battery management system to monitor individual cells or cell groups. When a cell experiences accelerated degradation or reduced capacity, the system bypasses the degraded unit while electric current continues to flow through the remaining functional cells.

Albert Skegro, a PhD student at the Department of Electrical Engineering at Chalmers University of Technology, said, "They must all move at the pace of the slowest person and stop when that person stops, regardless of how much energy the others have left. With the architecture we have modelled, the battery can instead bypass the cell that is causing problems and continue using the remaining cells."

Changfu Zou, Professor at the Department of Electrical Engineering at Chalmers, said, "Reconfiguration is not an on-or-off choice. It is a spectrum. Where a manufacturer chooses to position itself on that spectrum determines how much of the potential benefit can be realised."

In a representative modelling scenario featuring an 80 kWh battery pack driven 12,000 kilometres annually over an 18.8-year vehicle lifespan, the reconfigurable system deferred battery replacement by approximately 14 months. The researchers noted that the technology yields the highest performance gains in high-voltage vehicles, including 400-volt and 800-volt electric passenger cars and commercial trucks, where higher cell counts in series increase the statistical probability of individual cell variance.

A techno-economic analysis included in the study determined that implementing cell-level switching hardware increases initial pack production costs by approximately nine per cent based on prototype-scale volumes of 1,000 units. The researchers identified an economic break-even threshold at a 12 percent cost increase, noting that volume manufacturing would lower component costs and increase financial viability for fleet operators and private owners. While prototype applications such as Volvo Cars' SmartCell concept and experimental road vehicles exist, mass-production vehicles using reconfigurable battery packs are yet to enter the commercial market.

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