What’s the auto industry expecting from the Union Budget 2021
Though the industry had not been given direct incentives in the last couple of Budgets, the government has provided indirect support by way of the Make in India initiative and focus on rural economy and infrastructure
January 15, 2021 / 06:46 PM IST
The proposal to define ‘strategic sectors’ was announced by Finance Minister Nirmala Sitharaman as part of the ‘Aatmanirbhar Bharat’ package. (Image: PTI)
It’s been an exceptional financial year for auto companies. From registering zero sales in April and May 2020, due to the pandemic, to a significant year-on-year (YoY) growth in the latter half of the year, the sector has indeed come a long way.
Demand, especially for passenger cars and two-wheelers, has been fuelled by people’s preference for personal mobility. Other factors that helped are lower interest rates, easy financing and a pick-up in economic activities.
There has also been a significant pick-up in commercial vehicle (CV) volumes. All CV manufacturers...