• 5 months ago
In this video, we discuss what the Union Budget 2024 has to offer the auto sector.

The auto sector only contributes to 7% of the total GDP, and due to that, we haven't got a lot to look forward to.

One notable mention is the import duties waived off on 25 minerals, two of them being Copper and Lithium Ion, both a key part of manufacturing battery packs.

#unionbudget2024 #budget2024 #autosector #automobilesector #fame3 #DriveSpark
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Transcript
00:00Union Budget 2024.
00:14Something for the automotive sector that didn't really work out for us.
00:18Now we expected subsidies on the whole electric segment right from the vehicles to charging
00:23stations to battery packs and a whole lot of others.
00:27Now we also expected reduction, tax reductions on hybrid vehicles, we expected import taxes
00:32to be reduced and we also expected Fame 3.
00:36Now all of this hasn't happened and Fame 3 is still just a dream for all of us.
00:41In Himalaya Sitaraman's official statement, she did announce that 26,000 crores was announced
00:46to Bihar's rural infrastructure and a few hundred crores were also invested in Andhra
00:52Pradesh.
00:53Now that is basically all that we've got.
00:55The auto sector only contributes to 7.1% of the total GDP, however, that is still some
01:02amount.
01:03It might be a small amount, but it still contributes to the entire GDP.
01:06Now all that we've got from this is something really small and those are the import duties
01:10waived off on 25 minerals.
01:13Now some of these minerals that are actually important to us are the lithium ion minerals
01:18and copper.
01:19Both of these play a huge role in the manufacturing of batteries, in the manufacturing of battery
01:24plants.
01:25What we can expect is hopefully in the near future, we can expect a slight drop in electric
01:33vehicle prices in EVs due to the localization of batteries.
01:37Now since we've got import duties waived off of lithium ion and copper, that means we'll
01:43get them at a cheaper price, which means we can manufacture a whole battery pack for cheaper.
01:49We're still importing battery packs, there's no subsidy being put on battery packs, there's
01:53no import taxes waived off on battery packs, so we're still paying that extra amount for
01:58that.
01:59So now with the localization of these batteries, this will also bring out job opportunities
02:03for youth and will also reduce unemployment.
02:07Now this will not happen anytime in the near future, this will take some time once the
02:12whole struggles, once we understand the whole process of making a full battery.
02:17Now as unemployment reduces, as we bring out more job opportunities, the prices of
02:24EVs may also reduce and this may meet the same price as ICE vehicles or probably go
02:29even lower.
02:31So now what do you think will happen in the near future after hearing the Union Budget
02:352024 for the auto sector, let us know in the comment section below.
02:40Don't forget to like, share and subscribe.
02:42My name is Vedant Johari, signing out.
02:47Thanks for watching.
02:48See you in the next video.
02:49Bye.

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