“The 2021 Union Budget is a big booster for spearheading the economy’s growth. We are glad the Government has announced investment in road infrastructure coupled with announcement of scrappage policy. These will bode well for the auto industry as they will help it achieve the twin objectives of boosting demand whilst recycling old and polluting vehicles in our country. While we look forward to the minute details of the policy, ensuring seamless execution will be key.
Additionally, with the government allowing one man companies and increasing the threshold for the definition of small companies, we expect and hope that used car dealers in India will consider shifting from sole proprietorship to companies. This will make them further organized and open up different forms of financing markets for them. Extension of one year tax holiday will also prove to be a welcome move for start-ups in India.
We are sure that the announcements made under 2021 Union Budget will help sustain the pace of growth witnessed in the last few months in the auto industry.”
Ruchit Agarwal, Co-founder and CFO, CARS24.