Auto stocks were buoyant on the National Stock Exchange, Friday afternoon, after Finance Minister Piyush Goyal announed a series of measures in Interim Budget 2019, which are likely to boost the rural economy and consequently push the auto sales in that market.
The Nifty Auto index was trading 4.33 per cent up at 8,575 around 01:20-1.25pm, with shares of Hero MotoCorp (up 7.55 per cent), Maruti Suzuki India (up 6.40 per cent) and Ashok Leyland (up 6.09 per cent) as top gainers.
Subrata Ray, Senior Group Vice President, ICRA said that in the line with expectations, the budget has focused on supporting the rural economy, marginal farmers, and low-income segments. It has also provided a major boost to disposable income for the middle-income category through income tax relief. The support to residential real estate through relief on notional rent for unsold inventory and second home buyer is also positive for the consumption sentiment. All these steps augur well for reviving automotive sector demand.
Sohinder Gill, Director General, Society of Manufacturers of Electric Vehicles (SMEV) said that EV industry welcomes Finance Minister’s commitment towards making the country pollution free, but he want the government to announce a concrete time-bound plan of action to fulfil its stated vision.
SMEV feels that an initial high dose of incentives and actions must be taken in the next one or two years to relaunch the electric mobility mission that seems to have lost steam in the recent years due to policy flip-flops.
Ayush Lohia, CEO Lohia Auto Industries said, "As per the 2019 budget, EVs are a key part of the Centre's vision for 2030. The next decade will also likely witness a greater push towards electric vehicles."
"However considering the environment concerns we were hoping for something concrete in the 2019 budget. Moreover to meet the target of 2030 the government needs to plan today instead of giving the electric vehicles a push at a later stage." he said.