Toyota Kirloskar Motor (TKM) has sought simplification of laws to improve ease of doing business, roll out of scrappage policy and lowering of custom duties on imported vehicle parts in the upcoming Union Budget. Spelling out its Budget wish-list on Monday, the automaker also sought policy measures to support production of electric and hybrid vehicles (xEVs) in the country.
“We believe that focus on long-term growth and a further improvement in the investment climate are necessary for continued sustainable economic development. “For this, the Union Budget 2021 is a good time to bring in more policy measures, reforms and simplification of laws that can further strengthen ease of doing business,” a TKM spokesperson said in a statement.
The scrappage policy, which has been under consideration of the government for quite some time, has the potential to simultaneously reduce pollution, fossil fuel consumption as well as boost demand for new vehicles, thereby meeting many key objectives, it added. “We are hopeful that this will find a mention in the upcoming Budget along with enhanced actions to usher in reforms in land, labour and liquidity, which will help in attracting investments and improve competitiveness,” the statement said.
Besides, rationalisation of custom duties on SKDs (semi knocked down) and CKDs (completely knocked down) units should also be considered, as it will be beneficial in the long term for faster market introduction and localisation of newer and enhanced technologies, it added. “We are also looking forward to measures that can provide the necessary impetus for the manufacturing of xEVs and their parts in India,” the company spokesperson noted.
To attract investments for local xEV parts manufacturing, it is necessary that government policy support extends to all xEV technologies proportionate to the social benefits they provide, the company said. This will help for a faster, smoother and disruption free technology shift to the electrified vehicle ecosystem, it added.
The company, which is a joint venture between the Kirloskar group and Japanese auto major Toyota Motor, said the economic recovery is evident now and, hence, proved that the fundamentals of the Indian economy remains strong. The growth momentum across key sectors witnessed in the post-lockdown period is encouraging, it said. India Inc is now looking forward to a Budget that will strike a right balance between the need for addressing fiscal considerations and the requirement to propel growth, the spokesperson added.
TKM sells models like Fortuner and Innova Crysta in the country.