The Finance Minister, Nirmala Sitharaman announced a slew of reforms for the Auto Industry which is currently facing the worst slowdown for the first time in a decade.
In her address to the media, the Finance Minister announced the following relief to the Automobile sector:
- Revision of the one-time registration fee is being deferred until June 2020.
- BS-IV vehicles which will be purchased till March 2020 will remain operational for the entire period of registration. She noted that "It was a big issue, It's not as if from 2020, they're off the road. They are allowed till their registration is one."
- Both electric vehicles and internal combustion vehicles will continue to be registered. The government's focus will be on setting up of infrastructure for the development of ancillaries or components including batteries for export.
- All the vehicles acquired from now until March 31, 2020, will get an additional benefit of 15 per cent depreciation, taking up the total depreciation to 30 per cent.
- The Government of India will lift the ban on the purchase of new vehicles by the government department to boost the demand and these vehicles should be replacing the older vehicles.
- A new policy related to scrappage will be introduced soon.