Budget 2026: GST reforms, EV ecosystem key for auto growth
What's the story
Piyush Arora, the Managing Director and CEO of Skoda Auto Volkswagen India, has stressed the need for policy continuity and a strong electric vehicle (EV) ecosystem in the upcoming Union Budget. He said these elements are critical to maintaining momentum in India's automotive sector. The Pune-based company oversees six brands: SKODA, Volkswagen, Audi, Bentley, Lamborghini, and Porsche in India.
Industry revival
GST reforms revived domestic passenger vehicle industry
In a conversation with PTI, Arora said last year's GST reforms helped revive the domestic passenger vehicle industry. He emphasized that continuity is extremely important for their sector along with a further focus on infrastructure growth and building up the EV ecosystem. Arora also stressed customs tax reforms would help multinationals manage exports and imports better.
Trade opportunities
Regulatory issues and India-EU FTA
Arora highlighted a delay in the final notification of new Corporate Average Fuel Economy (CAFE) norms. He said a clear roadmap and consistency across technologies would be welcome steps. On the India-EU free trade agreement, he said it could open opportunities for brands like SKODA, Volkswagen, Audi, Porsche, and Bentley by bringing products and technologies faster into relevant markets.
Market approach
SKODA's strategy: Local for local
Arora revealed that Skoda Auto Volkswagen's strategy is "local for local," developing products in India for the Indian market and exporting them. He said this strategy will drive volume but also create opportunities to offer some global products at reasonable price points. The company plans to introduce new technology and certain products catering to enthusiasts through this approach.