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‘This policy’ of Modi Government to increase the sales of vehicles and government's revenue

Saturday - November 16, 2019 4:18 pm , Category : BUSINESS
Soon permission to auto scrap policy
Soon permission to auto scrap policy

Modi Government's 'master plan' to bring momentum in the auto sector facing recession!
 
NOV 16 (WTN) - India's automobile sector has been hit the most by the global economic slowdown. The Indian automobile industry has been witnessing a decline in vehicle sales for the last 18 months. Even in festivals, the selling of vehicles could not be done as expected. The first and direct impact of the global economic slowdown has had on the Indian auto industry. The auto industry, which is facing the recession, has been demanding from the Modi Government for a long time that some important measures should be implemented as soon as possible to support the industry going through bad times. The Modi Government is also worried about the slowdown in the auto industry and is considering taking measures to boost sales.
 
In this context, the Modi Government is now going to take some new steps in an effort to overcome the slowdown in the auto sector. As we told you that the demand for vehicles has reduced to a historic level in the market at this time, the government is trying to create new demand in the auto industry. For your information, let us know that the long-awaited auto scrap policy can be implemented soon. According to information received from the media, the Ministry of Road Transport has issued an auto scrap policy draft cabinet note, and it is being said that it may get approval from the cabinet in the next two weeks.
 
For your information, let us know that according to the sources, the draft cabinet note issued by the Transport Ministry, there has been an agreement in the Ministries of Finance, Transport, Steel and Environment regarding scrap policy. The scrap policy is expected to be implemented as soon as this policy is approved by the cabinet. Now you must be wondering what is a scrapping policy and how will it increase the sales of vehicles and what will be the benefit to the government? So let us tell you in full detail.
 
Actually, the Auto Scrappage Policy Draft provides for strictness on the purchase and sale of old commercial vehicles. But at the same time, many discounts can be given on purchasing a new vehicle in place of the old one. If a person scraps his old vehicle and buys a new vehicle, then it is proposed to give exemption in the road tax and registration charge. But at the same time, if the vehicle is more than 15 years old, then it may have to pay more road tax. The renewal charge can be increased manifold upon registration of the old vehicle in the proposed policy in the draft. According to the information, the initial proposal will have to pay 25 times the registration renewal, which will include cars, 3-wheelers, and 2-wheelers.
 
According to the information, registration and fitness rules can be tightened for vehicles manufactured before 2005. According to an estimate, two crore vehicles manufactured before 2005 in the country are running on the roads of the country. The intention of the new scrap policy is to discourage such vehicles so that the sale of old vehicles can be reduced or stopped and people buy new vehicles.
 
After scraping old vehicles in the new scrap policy, buyers of new vehicles can get a concession from the government and dealers. At the same time, the Transport Ministry is planning to automate the fitness system in the coming two years, in which there will be no human intervention. It is being said that due to this, corruption will be curbed and vehicles that do not meet the standards will be identified correctly.
 
After the new scrap policy, the revenue of the government is also said to increase. According to experts, the new policy can increase the revenue of the government by about 100 billion rupees. At the same time, the new policy is expected to increase sales of new vehicles by 22 percent. At present, the automobile industry, which is about 4.5 lakh crores, can become an industry of 20 lakh crores after the new policy.
 
According to auto industry experts, the new scraping policy of the government will increase the sales of vehicles in the country's automobile industry facing an economic downturn, as people will buy new vehicles. From time to time, data from the Society of Indian Automobile Manufacturers (SIAM) has shown that the sales of vehicles are decreasing. Now in such a situation, the automobile industry also has high hopes from the new policy of the government that it will increase the sales of vehicles and employment in this area.