Budget 2021: Introducing incentives for electric vehicle buyers can boost the demand in auto sector
Budget 2021: The automobile sector has witnessed several challenges due to a reduction in demand and an increase in costs due to regulatory changes amid emission and safety norms. Some of the steps like reduction of the GST tax rates to 18 per cent, introduction of the incentive based vehicle scrappage policy to scrap over 15-year-old commercial vehicles, local sourcing of automobile parts and EV incentives for electric vehicle buyers can trigger a boost in demand for the sector, said Mr. Nilesh Shah, Chairman and MD, Atlas Integrated Finance Limited. The automobile sector suffered a slowdown in terms of demand and the expectations were not met for the sector in last year s budget.