Infra spending, vehicle scrappage policy will help auto industry: MG Motor

  • Budget 2021 has announced that there will be a detailed vehicle scrappage policy soon.
The scrappage policy will pave the way for new vehicles. (MINT_PRINT)
The scrappage policy will pave the way for new vehicles.

Budget 2021 had a number of key announcements for the Indian automotive sector, most of which have been appreciated by the industry. A boost to infra spendings and the announcement of vehicle scrappage policy may be two of the most significant of these.

Also Read : Vehicle scrappage policy helps stocks of carmakers jump more than 10%

In a webinar conducted by HT Auto, Gaurav Gupta, CCO of MG Motor India dubbed the budget as a good one. With the focus on Atmanirbhar Bharat or self-reliant India, the budget has laid out plans in the right direction to promote local manufacturing. “Investment in highways and infrastructure spending will help commercial vehicles. Overall the budget was a good one. At some point, even better than expectations," he said.

Also check these Vehicles

Find more Cars
Mg G10 (HT Auto photo)
FuelType IconDiesel
₹ 24 - 30 Lakhs
View Details
Mg Baojun 510 (HT Auto photo)
Engine Icon1998.0 cc FuelType IconDiesel
₹ 11 Lakhs
View Details
Mg Ehs (HT Auto photo)
BatteryCapacity Icon16.6 kWh Range Icon52 Km
₹ 45 - 55 Lakhs
View Details
Mg Gloster (HT Auto photo)
Engine Icon1996.0 cc FuelType IconDiesel
₹ 29.98 - 37.28 Lakhs
View Offers
Mg Hector (HT Auto photo)
Engine Icon1956.0 cc FuelType IconMultiple
₹ 15 - 22.20 Lakhs
View Offers
Mg Erx5 (HT Auto photo)
BatteryCapacity Icon48.3 kWh Range Icon425 Km
₹ 25 Lakhs
View Details

Gupta also pointed out that the sectoral spending growth under the government’s National Infrastructure Pipeline project will help the auto industry in multiple ways. For the industry’s growth, there is a requirement of a clear roadmap, which was focused on the budget 2021 announced by Finance Minister Nirmala Sitharaman on Monday, he opines.

Gupta also believes that the government’s move such as increased spending on core sectors like health, not imposing new taxes, an indication of introducing vehicle scrappage policy will encourage people to buy new vehicles, which will help the auto industry that has been suffering from lack of demand for the last few years - first due to a slowdown in the economy and then with the Covid crisis.

First Published Date: 04 Feb 2021, 08:52 AM IST

Please provide your details to get Personalized Offers on

Choose city
+91 | Choose city
Choose city

Want to get the best price for your existing car?

Powered by: Spinny Logo
By clicking "View Offers" you Agree to our Terms and Privacy Policy
Dear Name

Please verify your mobile number.

+91 | Choose city
Couldn't verify the OTP.
It's either expired or it's incorrect.