Automobile retailers have reacted positively to the Union Budget, adding that the renewed focus on the aam aadmi and the rural sector will help spur auto sales in coming months.
23 Jul 2024 | 3427 Views | By Autocar Pro News Desk
Automobile retailers have reacted positively to the Union Budget announced by Nirmala Sitharaman today. Manish Raj Singhania, president of FADA, or Federation of Automobile Dealers' Association, believes that the renewed focus on the aam aadmi and the rural sector will help spur auto sales in coming months. The budget unveiled a slew ...
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Automobile retailers have reacted positively to the Union Budget announced by Nirmala Sitharaman today. Manish Raj Singhania, president of FADA, or Federation of Automobile Dealers' Association, believes that the renewed focus on the aam aadmi and the rural sector will help spur auto sales in coming months. The budget unveiled a slew of measures meant for revitalising the rural economy and farming sector in what is seen as an attempt by the Narendra Modi government to appease rural voters after its poor showing in recent elections.
"The enhanced Minimum Support Prices for major crops and the launch of Phase IV of PMGSY are positive steps that will boost rural incomes and improve rural connectivity, thereby potentially increasing rural auto sales," Singhani said.
He also lauded the emphasis on skilling, employment and the small enterprises.
"The Employment Linked Incentive scheme and the enhancement of Mudra loans are encouraging developments that will support job creation and entrepreneurship, leading to increased consumer spending power."
The allocation of Rs 11.11 lakh crore for capital expenditure -- including roads and bridges -- will also help the auto industry in the long term, he added.
"Improved infrastructure is a boon for the auto sector, facilitating better logistics and enhancing the overall consumer experience."
Meanwhile, greater disposable incomes in the hands of the middle class -- thanks to an easier rates of personal income tax regime -- will enhance disposable incomes, he noted.
At the same time, Singhania said the key question remains around the implementation of these announcements.
"While the budget provides a robust framework for growth, the effective implementation of
these policies will be crucial. We hope for continued support from the government in addressing specific issues faced by the auto retail sector, such as the transition to green mobility and the need for policies that support sustainable practices," he added.