Union Budget 2022: Hits and misses for India's auto sector

Union Budget 2022 was presented in Parliament on Tuesday morning by Finance Minister Nirmala Sitharaman in which she touched upon several highlights from the road map charted for the Indian economy. While the pandemic years had brought with it various challenges, the outlook ahead is one that is largely seen with a sense of cautious optimism.

File photo used for representational purpose. (AFP)
File photo used for representational purpose.

For the Indian automotive sector, the challenges had begun appearing on the horizon even before Covid-19 rared its ugly head. The situation has - and continues to be - largely grim even if there has been a big push in the world of electric mobility.

As far as electric mobility is concerned, there were some key announcements in Budget 2022 which has been lauded at large by the auto sector. But for the overall auto sector, however, there wasn't much reason to cheer.

Also check these Vehicles

Find more Cars
Mercedes-benz C-class 2022 (HT Auto photo)
₹ 55 - 61 Lakhs* *Ex-showroom price
Add to compare
Check latest offers
Benling India Benling Kriti (HT Auto photo)
₹ 56,940 - 66,121**Ex-showroom price
Add to compare
Check latest offers
Benling India Benling Aura (HT Auto photo)
₹73,000**Ex-showroom price
Add to compare
Benling India Benling Falcon (HT Auto photo)
₹ 62,200 - 71,248**Ex-showroom price
Add to compare
Check latest offers
Hcd India Nps Cargo (HT Auto photo)
₹ 54,500 - 58,500**Ex-showroom price
Add to compare
Check latest offers
Mahindra Thar (HT Auto photo)
₹ 10.98 - 16.94 Lakhs* *Ex-showroom price
Add to compare
Check latest offers

Here's a look at some of the hits and misses for the Indian auto industry from Union Budget 2022:


India's push to promote clean transport technology has been gathering momentum for quite some time now. Budget 2022 added a bit more thrust with battery makers set to gain from a new swapping policy for electric vehicles.

Little wonder then that EV players welcomed the move. “The introduction of the battery swapping policy to improve the country's EV infrastructure is a positive and progressive step that could potentially address the range anxiety issue, which is one of the impediments to a mass-market transition from internal combustion engine-based vehicles to electric vehicles," said Jeetender Sharma MD of and Founder at Okinawa Autotech.

Yogesh Bhatia of LML Electric echoed the sentiments. “Clean and sustainable mobility is critical for reducing fossil fuel dependence and combating climate change," he said. “We applaud the government's efforts in this area and look forward to seeing concrete steps taken to address the barriers to EV adoption."

(Read more reactions here)

There's also some cheer for the transport and infrastructure sector with the finance minister announcing plans of 25,0000 kms of national highway in 2022-23. Boost in connectivity, many regard, would promote not only economic development over all but give an impetus to the tourism sector as well.


Car manufacturers are likely to feel left out. Facing unprecedented challenges from the global shortage in semiconductor chip and rising input costs, there wasn't much in Budget 2022 that assured of relief. Live Mint reported that the S&P BSE Auto Index was the worst performer among 19 sectoral gauges after Tuesday’s budget announcement.

First Published Date: 01 Feb 2022, 17:25 PM IST
Shopping Bag Shop Now
74% OFF
Microfiber Car Cleaning Soft Brush Ideal as Mop Duster, Washing Brush with Long Handle, Dust Cleaner Car Wash Brush with Handle, Soft Brush Scratch Free, Cleaning Dashboard Curved Design - Grey
Rs. 389 Rs. 1,499
64% OFF
Antson Portable High Power 2 in 1 Car Vacuum Cleaner | USB Rechargeable Wireless Handheld Car Vacuum Cleaner Traveling, Camping Reusable and Sustainable, Portable,Rechargeable Vacuum (2 in 1)
Rs. 699 Rs. 1,939
73% OFF
IDELLA Car Duster, Extendable Long Handle Microfiber Car Duster Exterior Scratch Free Car Cleaning Tool, Car Dust Brush for Truck, Pickup, SUV, RV, Motorcycle, Vehicles Cleaning,(Multicolor)
Rs. 239 Rs. 899
1% OFF
GOODAIR Clear Car Windshield Enhancer | Classic |12 Tablets
Rs. 295 Rs. 299

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city
Choose city
Powered by: Acko Logo
Please be noted that any information provided herein above will be received by Acko General Insurance Limited (“Acko”). By mentioning the above information, you agree to provide these details and information to Acko.
By clicking "View Offers" you Agree to our Terms and Privacy Policy

Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.