Big decision of Modi government, now ‘good days’ of auto sector will come

New Delhi, August 23, 2019 : Modi 2.0, led by PM Narendra Modi, has made major announcements on Friday to bring the auto sector back on track. Union Finance Minister Nirmala Sitharaman announced several steps for this sector, saying that these measures will soon bring good days for the auto sector.

Modi government will remove the ban under which government departments cannot buy new vehicles at present. The sluggish demand from the auto sector is expected to be strongly encouraged by the government’s move.

Significantly, the auto sector has been experiencing heavy slack for the last few months. The main reasons for this are the large reduction in demand and confusion among the people with the auto sector towards the policies of the government.

Addressing a press conference in New Delhi, Finance Minister Nirmala Sitharaman said that the BS-4 based vehicles purchased by March 2020 will be valid for the entire duration. This has eradicated the cloud of BS-4 based vehicles. Till now it was believed that after 2020, it will be illegal to drive BS-4 based vehicles and after that BS-6 based vehicles will remain.

To boost the demand for the auto sector, Finance Minister Sitharaman said that the government will withdraw proposals to increase the registration fees of vehicles. This will give relief to the customers buying vehicles, because now they will have to pay less for registration.

Sitharaman said that the government departments will now buy new vehicles instead of old ones. This will boost the demand for the auto sector. The government will encourage many government departments for this.