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