New Delhi: Auto sector got significantly affected by the country's recent recession. Now, the government has announced a range of relief measures to provide relief to the industry. The government has lifted the ban on purchase of government vehicles. Also, an additional devaluation of 15 per cent has been allowed on vehicles purchased from today to March, 2020.
Talking to reporters on Friday, the Finance Minister said that India Phase-four vehicles purchased by March 2020 will be run for the entire period of their registration. Centre to remove ban on purchase of new vehicles in lieu of old vehicles by government departments. Besides, a policy for scrapping old vehicles will also be brought in to encourage demand. Sitharaman said, the registration of electric vehicles as well as fuel (ICV) vehicles like petrol, diesel will continue.
The government will focus on developing infrastructure for accessories. These include batteries for export. The industry has been demanding a stimulus package from the Government. It also includes reduction in goods and services tax (GST) on vehicles. Now, for nearly a year now, the vehicle industry's sales figure has been steadily coming down. And jobs are also going up.
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