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The government should focus on increasing people’s income in the budget; Demand from the automotive sector is expected to increase.

Sagar Patel

By Sagar Patel

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The automotive sector has high expectations from the government

The government may soon present the full budget for the financial year 2024-25. This is the first budget of Modi 3.0. The most rapid changes are being seen in the country’s automotive sector. On the one hand, at the fuel level, instead of gasoline, diesel, electric, CNG and hybrid options arrive in cars and motorcycles. At the same time, security is becoming an important purchasing factor. In such a situation, what hopes does the automobile sector have regarding the budget? Let’s understand…

In the automotive sector, SUV sales remain strong. There is a positive trend in commercial vehicle sales. But meanwhile, the automotive sector is seeing a decline in rural demand. That’s why he wants the government to focus on this.

The focus should be on innovation along with rural demand.

The NDA government did not win the expected seats in the elections. In such a situation, industry experts believe that the government’s emphasis may be on spending more on the rural segment. To do this, the government can increase capital spending. The automobile sector will definitely benefit from this as it will help increase rural demand. Especially in the sector of 2-wheeled vehicles and minivans.

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Apart from this, many changes are being seen in the country’s automotive sector, such as behavioral changes regarding electric vehicles and work on other fuel options. In such a situation, to maintain demand growth, the government should also pay attention to segments that promote innovation.

Effective plans must be made regarding electric vehicles

The adoption of electric vehicles should increase in the country. The government must also pay attention to this. Industry experts believe so. Mint also quoted Amar Nandu, research analyst at Samco Securities, as saying that the government needs to expand the benefits of the fame subsidy. This will help automakers. At the same time, the growth of electric vehicle adoption in the country will continue.

spend money in people’s hands

Tax reform from the government is also expected in the budget. Especially when it comes to GST on 2 wheelers. At the same time, income tax reforms or increasing the scope of exemption will save people money, giving them reasons to spend disposable income. This will increase the overall demand in the market.

Sagar Patel

Sagar Patel

I am Sagar Patel, specializing in business news reporting. With a keen focus on economic trends, market analysis, and corporate developments,

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