Budget 2022: Covid-hit automobile industry seeks revival measures from govt
India Today
The Federation of Automobile Dealers Association (FADA) has proposed a few recommendations for Budget 2022 to Finance Minister Nirmala Sitharaman.
The Covid-19 pandemic has caused havoc in the automobile industry and the ongoing third wave may further impact sales. The Rs 8 lakh crore industry, which contributes approximately 7.1 per cent of overall Gross domestic product (GDP), is seeking measures in the Union Budget 2022 for revival.
The Federation of Automobile Dealers Association (FADA) has proposed a few recommendations for Budget 2022 to Finance Minister Nirmala Sitharaman.
BUDGET FOR EV
With India witnessing steady growth in demand for electric vehicles (EV), the government should make the EV sector a priority lending sector for financial institutions.
Deepak MV, CEO and Co-Founder, Etrio said, "At a time when EV adoption is gaining unprecedented momentum despite many challenges, in the upcoming Union Budget 2022, we at Etrio would like to see the Finance Minister address the critically-important area of making wide and varied range of financing options available for EV commercial vehicles' buyers as this is extremely critical for further increased uptake of EVs in India, going forward."
Additionally, reducing the GST taxation on Lithium-ion batteries and EV spare parts and components can also be a great step forward from the EV manufacturing and OEM point of view, Deepak MV said.
ALSO READ | Union Budget 2022-23: Will homebuyers get additional relief measures?
