The automobile sector registered 50 per cent growth in sale ahead of Diwali festival in pandemic time. The car dealers counted three reasons behind better sale of cars this year.
My Car sales manager Dinkar Rao said, “In last six month during lockdown, people saved money by maintaining routine expenses at government cost. Government distributed free ration to people during lockdown. Such people are purchasing cars. Secondly, government officials received full salaries even during lockdown, so they are investing money in car purchase. Thirdly, people still avoid use of public transport due to Covid. So, they are purchasing cars. These are major reasons why car sales have gone this year up compared to last year.”
Besides, union government has announced a reduction in corporate tax from 30 per cent to 22 per cent. This means the effective tax to be paid by companies will be 25.17 per cent. The automotive sector, which has seen its worst figures in decades over the last few months, is taking benefit from this.
The tax cut will boost the morale of the major car and bike makers who are undergoing what could be called a crisis in sales and production supply chain. Automobile sector has appreciated the government's tax cut initiatives and stating that this could provide a much-needed push to local manufacturers in auto sector.