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Govt announces measures to help auto sector

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Finance Minister Nirmala Sitharaman on Friday, 23 August 2019, announced multiple initiatives to help boost the beleaguered automobile sector.

FM assured that BS IV vehicles purchased till 31 March 2020 will remain operational for entire period of registration.

Sitharaman went on to speak about the proposed increase in one-time vehicle registration fee, saying that the proposal has been pushed back to June 2020.

FM also approved higher depreciation for all vehicles. Sitharaman said that depreciation will be increased to 30% for all vehicles acquired during the period from now till 31 March 2020.

The FM also clarified that both electric vehicles (EVs) and internal combustion vehicles (ICVs) will continue to be registered. Government's focus will be on setting up of infrastructure for development of ancillaries/components including batteries for export.

To boost demand, FM announced lifting the ban on purchase of new vehicles for replacing all old vehicles by departments. Government will also consider various measures including scrappage policy.

Indian automobile industry body SIAM (Society of Indian Automobile Manufacturers) President Rajan Wadhera said that the industry highly appreciates that the FM has responded with a package of measures within two weeks of its consultation with the industry.

Meanwhile, before the finance minister's statement on Friday evening, Minister of Road Transport and Highways Nitin Gadkari reportedly stated that the government does not have any plans to ban petrol or diesel vehicles.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, August 23 2019. 19:28 IST