The primary focus of the Budget 2021 was on economic recovery in the post-lockdown world. It included some highlights for the automotive industry, which is among the biggest contributors to the Indian Gross Domestic Product (GDP).
Here are some of the highlights of the Budget 2021 on the automotive segment:
- Vehicle scrappage policy
This policy aims to check the rising air pollution levels in the country. According to this policy, commercial vehicles older than 15 years and private automobiles that are over 20 years can be compulsorily scrapped if they fail the fitness test conducted at government centers. This may be a boost for voluntary scrapping, which may, in turn, prove beneficial for the automotive sector.
- Fuel taxes
The Budget has introduced an Agriculture Infrastructure and Development Cess (AIDC) that will be added to diesel and petrol prices. However, this cess will not impact the fuel prices because the Special Additional Excise Duty (SAED) and the Basic Excise Duty (BED) rates have been decreased.
- Custom duty
Some selected auto spare parts will now pay an additional 15% customs duty. This will provide an incentive to the ‘Make in India’ initiative. However, it may increase the prices of vehicles assembled domestically. Nonetheless, this will not affect the manufacturing costs of automobiles produced domestically, which means you can now afford your dream vehicle with car finance.
- Infrastructure development
The Government of India is expected to allot new road and National Highway corridor projects. This boost to the road infrastructure will improve connectivity across the country, which may positively impact the automobile sector.
With multiple incentives offered for the automotive industry in Budget 2021, owning your desired vehicle is now easier. Leading financial institutions offer car loan online with several beneficial features, such as:
- Simple application and approval procedure
- Affordable loan interest rates
- Flexible repayment durations of up to five years
- Customized solutions based on your requirements
- Higher loan amounts based on the car’s price and eligibility
- Available for different makes and car models
- Minimal car loan documents required; these include income proof, address and identity proof, and know-your-customer (KYC) documentation
- No additional security required; the lender creates a charge on your car as collateral
- Available for salaried and self-employed applicants
You can apply for a vehicle loan from Mahindra Finance. Log on to its website and check your car loan eligibility now!