Updated: August 23, 2019 7:00:00 pm
Finance Minister Nirmala Sitharaman Friday announced measures hoping to revive the automotive sector that has seen a steep decline in manufacturing as well as a loss of jobs.
Among the measures introduced, the Finance Ministry announced that BS IV vehicles purchased up to March 31, 2020 will remain operational for the entire period of its registration and the revision of one-time registration fees for vehicles has now been deferred till June 2020.
Over 286 dealership outlets downing their shutters in the last 18 months and at least 15,000 job losses estimated over the last quarter.
Addressing a press conference on measures to boost the economy, the government announced an additional 15 per cent depreciation on all vehicles increasing it to 30 per cent acquired till March 31, 2020. On electric vehicles (EVs) and intermediate commercial vehicles, the government announced that it will be setting up infrastructure for the development of ancillaries and components including batteries for export.
The government has also decided to lift the ban on the purchase of new vehicles for replacing all old vehicles by government departments. She also added that the government will consider new measures including a scrappage policy.
Sales across categories, including passenger vehicles and two-wheelers, was down nearly 19 per cent at 18,25,148 units in July 2019, according to data released by the Society of Indian Automobile Manufacturers (SIAM). The previous biggest decline across overall domestic automobile sales was in December 2000, when volumes fell 22 per cent.
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