In a bid to uplift automotive industry, there is a need to infuse means for direct stimulus through structured policy interventions. Vipin Sondhi, MD & CEO, Ashok Leyland shared his expectation from the government on the auto and commercial vehicle (CV) industry.
Sondhi speaking on the policy interventions, pointed out, “Coming to the automotive industry, specifically CVs, this has been one of the worst hit sectors, owing to pressure from a prolonged slowdown and further, from an unprecedented pandemic. Therefore, there was an expectation of a direct stimulus package in the form of reduction in GST, an incentive-based vehicle scrappage policy and a thrust on the purchase of buses for public transportation.
Sondhi observed, “The combination of an ‘Aatmanirbhar Bharat’ with integration with the global supply chain is inspiring. The packages announced last week went big on much needed reforms in Agriculture, Mining, Defence, Public Health & Education and more. These will augur well for the future of our economy.
He also believed that an accelerated infrastructure spend in rural India would create assets, jobs and income in rural India, which would bring movement of goods, thereby also providing a fillip to the CV industry.