“While the vehicle scrappage policy seems voluntary at this stage, I think this may be the first of many bold steps the government is likely to take to aggressively curb use of polluting vehicles and usher an era of electric vehicles in line with global trends. This measure portends well for the auto sector in the medium term as it is likely that a large number of older commercial and private vehicles will be replaced by newer fuel efficient vehicles, thus requiring large additional investments by auto and auto parts manufacturers.
Further, with the FM’s budget proposing to make large outlays for capital investments in infrastructure and on improving public transport, the auto sector is likely to see a surge in investments and employment opportunities in the near to mid-term’.
