New Delhi: Due to Covid-19 the automobile industry has suffered significant loss. Auto companies took big steps to compensate for the economic loss, but the situation is still not completely improved. Automakers are desperately trying to get the economic wheel back on track by completing the loss in 2021. The Union Budget is going to be presented on Monday. Before the budget, people from each industry have high expectations of what the government is going to announce for them. The auto industry also has high expectations from the general budget.
Experts are hoping to get attractive relief from the government, weather it is State or Center, because they've increased the focus on electric vehicles during the lockdown. Experts believe that with the introduction of the vehicle scrap policy, where India will become a major center of automobiles. On the other hand, if the GST rates are reduced, it will reduce the prices of E-vehicles. In such a situation, people will be able to buy electronic vehicles at a lower price.
At the same time, companies are seeking to reduce the customs duty on the import of Lithium ion batteries to take the industry to growth, including increment the sales of electric vehicles. They are also talking about exempting electric vehicles from GST. This can make vehicles cheaper. Since Corona, people have been preferring personal vehicles. In such a situation, the number of first time buyers may increase due to lower prices.
During the lockdown, the central government had talked about vehicle scrap policy. In which it was said to be given a discount on the purchase of a new electric vehicle instead of the old one. The government had prepared this scheme with the aim of reducing pollution and increasing sales of electric vehicles. In such a situation, the people of the industry are hoping that this policy will be passed in the budget of 2021-22.