Budget 2020: Road to revive automobile industry

By Prashanth Doreswamy

"Budget 2020 will be the key to set the tone for the revival of the automotive industry.

To realize the full potential of BS6 implementation with reduced emission, the Government should introduce scrappage policy by offering a one-time incentive in the form of rebate in taxes for replacing vehicles that are greater than 15 years and facilitate taking them off the roads. Tightening and scrappage norms for vehicles can support demand creation

Extend the depreciation rate for passenger vehicles and two-wheelers to 25 per cent permanently.

Standardize road tax and registration charges across states."

(Prashanth Doreswamy, Managing Director, Continental Automotive India)