With the Budget due for presentation less than a week from now, the auto sector is hoping for some of a sentiment impetus for customers. Segments such as two-wheelers and tractors were hit following the Centre’s move to demonetise high value currency in November. Buyers were naturally wary of spending at a time when long queues in ATMs were the order of the day.

The auto industry believes the Budget should have enough goodies in store for the middle-class such as tax breaks, low interest rates and housing incentives, which can promote the feel-good factor all over again.

With more disposable income in their hands, customers will be ready to start buying all over again, which would be the best piece of news to manufacturers.

Beyond the Budget, industry will keep its fingers crossed about the implementation of the Goods and Services Tax from July. This will go a long way in easing the tax structure and will again play a big role in boosting market sentiment.

With Bharat Stage IV emissions due to be in place nationwide by April, vehicles will become dearer and pose a challenge to sales.

Related Topics