Latest Car News in India

Last nine months have not been less than a nightmare for the Indian auto industry. According to the sales statistics revealed by the industry the decline in the sales have been the worst during the last two decades. Commenting on the reasons behind the slow progress auto makers are of the view that the steps adopted by the government are not sufficient to boost the sector and the government needs to adopt more efforts to help the industry in coming out from the existing crisis. Industry experts believe that the government need to adopt more elastic policy towards the non-banking financial companies (NBFCs). 

 

Commnenting on the recent announcements made by the honorable Finance Minister Nirmala Sitharaman, the report says, “"The specifics, on the other hand, while broadbased, may not be sufficient to create a virtuous cycle of demand recovery given that the level of pessimism is extremely high, that more is required to lower the real estate inventory and to restart the cycle of lending by the NBFCs,”.

 

 

Recently, the government has announced that it will offer the depreciation of 15 percent on all the vehicles on the vehicles that would be purchased till March 31, 2020. However, the report states, that this move by the government will be helpful in clearing the inventory of the vehicles stocked in the yards of auto manufacturers. Moving ahead on the decision of being simplifying the restrictions on the NBFCs and housing finance companies (HFCs) the report reveals that it will be helpful in granular retain housing, vehicle financing and MSME loans.

 

Finally the report also reveals that there is a huge need of rectifying the issue associated with the high level of risk aversion involved in the banking sector dealing in the business of offering loan against the property. In the absence of this the measures adopted by the government will be helpful in only increasing the role of PSBs, backed by NBFCs and HFCs.