The sales of vehicles in the country are running at a fast pace. Retail sales of vehicles have increased by 9 percent in the April-June quarter. During this period, sales of everything from SUVs to commercial vehicles are registering a boom. But there has been a decline in tractor sales during the last quarter, which is indicating decline in rural demand. In such a situation, the auto market is demanding that the government should increase its focus in this sector, that is, the auto sector is giving more concessions to farmers and residents of rural areas.
In fact, only when their income increases will the sales of vehicles also increase. There is a demand from the government to increase capital expenditure to spend more in the rural segment, which will increase rural demand which will increase the sales of 2-wheelers and MPV segment.
Electric-hybrid vehicles will get a boost!
Along with this, experts believe that the government should also focus on innovation to promote electric and hybrid vehicles. Along with rural areas, the auto sector is waiting for the budget announcements to increase the income of every section.
In such a situation, there is also hope for tax reform which can pave the way for reduction in GST on 2-wheelers. At the same time, increasing the scope of exemption in income tax will also save more money for the people, which will increase the disposable income which will increase the demand.
There will be an announcement to bring Fame-3 scheme!
If we look at some other major demands of the auto sector, they include promoting electric mobility through FAME-3, giving the benefit of reduced tax rates to hybrid vehicles, bringing petrol and diesel under the ambit of GST and road transport. To continue the pace of spending on infrastructure. The auto sector has a huge contribution in the country’s economy, considering which the government should consider all these demands.
At the forefront in providing employment!
According to statistics, the automobile market has 7.1 percent share in the country’s GDP, while its share in manufacturing GDP is 49 percent. More than 3.5 crore people are employed directly and indirectly in this sector. By the end of this year, the size of the country’s automobile industry is expected to increase to Rs 15 lakh crore.
In such a situation, it can be understood how important it is for the health of this sector to remain healthy for rapid development and employment. Now it remains to be seen whether the government will announce any increase in the income of vehicle buyers in this budget so that this sector gets direct benefit.