Auto sector gets a breather as FM announces measures to boost demand

Resumption of car purchase by govt departments, increase in depreciation to 30% may boost sales

Facing its worst slowdown in two decades, the auto sector got a breather on Friday as Finance Minister Nirmala Sitharaman announced measures to boost demand. 

Executives said despite the weak economic scenario, the announcements would help send a positive signal to consumers just before the start of festive sales.  This is likely to translate into better-than-expected sales during the festive season. 

Measures announced to boost demand were a scrappage policy and allowing an additional 15 per cent depreciation on vehicles acquired till March 2020. In addition, BSIV vehicles purchased up to March 2020 will remain operational for the entire period