The Government of India has set its standards clear for the Automobile industry with the Union Budget 2019. With dwindling automobile sales, the automobile industry is going through a tough phase at the moment. Car manufacturers were eagerly waiting for the Union Budget in the hope of something substantial for them. Read on to see what is in store for the Automobile Industry by the Government of India.
Since the budget focuses on future expenditures that will be made, it also makes sense to invest in a greener future. Keeping that in mind, the Union Budget has given a lot of impetus to the development of electric vehicles to the customers and to the manufacturers.
What’s in it for customers?
-If you are going to invest your money in buying an electric vehicle, you will be getting an Income Tax rebate of Rs 1.5 lakh. That is a huge sum considering that you are using your private vehicle as your daily means of transport.
What’s in it for car manufacturers?
-The GST levied on these vehicles is now reduced to 5 per cent from 12 per cent. This move will ensure that the prices of electric vehicles are competitive as compared to the internal combustion engine vehicles.
What’s not good?
-The prices of petrol and diesel will become Rs 1 more expensive
-Custom duty increased to 30 per cent from 25 per cent for all the imported premium cars
-Custom duty increased to 15 per cent from 10 per cent for vehicles coming with an imported engine
The current scenario in the Automobile Industry is undergoing a difficult time, therefore, the Car manufacturers were expecting something much comprehensive than just providing benefits to electric vehicles. With the infrastructure for electric vehicles still in the nascent stages, however, a mass outburst of electric vehicle sales seems unlikely. What do you guys think should have been considered to improve the current state of the Automobile industry in India?