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I hope there will be some incentive to phase out old cars: Abdul Majeed

Abdul Majeed, Partner, Price Waterhouse, answers questions on the automobile sector and Budget 2015

Abdul Majeed 

Abdul Majeed

Will there be anything new on used cars? Will there be dumping of Indian used cars in some other country to create a larger market for new autos? Will there be any tax on multiple car possession?
- Varuni

I hope we will have some incentive to phase out old cars on the road. Though the used car market volume is almost twice the existing new car market sales, the Indian passenger vehicle market is still small with low penetration of vehicles compared to other developed markets. If the passenger car volume in the Indian market crosses 10 million units a year in another eight to 10 years, we may/will have to grapple with new issues like congestion, emissions from vehicles etc, which China is facing right now. May be taxes on multiple car possession will be more relevant once the volume increases on the road.

First Published: Thu, February 05 2015. 18:56 IST