To increase the demand for automobiles, the finance minister Nirmala Sitharaman announce few measures on Friday. These announcements boost the morale of the companies.
The senior executives of automobile manufacturing companies and many lobby groups welcomed the steps taken by the union government on Friday to increase the demand for automobiles.
The steps taken are:
- the government agencies must replace the old vehicle.
- They are making bank loans cheaper for the purchase of the vehicle.
- By increasing the credit availability to non-baking finance companies.
It is assured by the finance minister that vehicles compliant with Bharat stage IV emission norms registered before March 31, 2020, so that it will able to run for the whole period of registration and the entire life of the vehicle.
According to the chairmen of TVS company, these steps will provide a sudden relief which was eeking by the industries.
The prompt response by the government not only ensure the sector but also ensure the ordinary people because these steps boost the liquidity in the market.
The first concern fort he industry was the affordability and availability of retail finance as well as funding for dealers.
There is a release of Rs 70000 crore for PSU banks and Rs 20000 crore for National Housing Bank, and NBSCs will enhance the liquidity in the system, it announces by the Rajan Wadhera, president of SIAM.
The easing in the liquidity of the banking sector is folloe=wing by these steps such as an increase in depreciation rate by March 2020 — the delay in one-time registration fee which even more burdened the affordability of the customer. Few more steps are going to announce, which will surely increase the demand.