New Delhi: While welcoming the overall steps announced, Society of Indian Automobile Manufacturers (SIAM) President Rajan Wadhera said it would await the "next announcement of the finance minister on the GST reduction, post GST council meeting".
"The overall package of what has been done is going to greatly benefit the economy as a whole because it address the actual operational issues... The auto sector will benefit if the rest of the economy benefits," Maruti Suzuki India Chairman R C Bhargava said.
However, he said that while the Centre has taken the lead, states need to follow up, specially from automobile industry point of view and reduce road taxes and registration fees which were recently hiked by some states.
Mahindra and Mahindra MD Pawan Goenka said, "I think the financing concerns have been more or less taken care of by the announcements. Not much for reducing transaction cost but several other measures that will incentivise vehicle purchase and also remove some of the unfounded fears such as BS-IV vehicle registration." Goenka said the scrappage policy would be a big boost and the industry would wait and see.
TVS Motor Co Chairman Venu Srinivasan said these measures will provide the immediate relief that the industry was seeking. "The promptness of this government's response is reassuring for not just industry, but for the common man as well because it's putting liquidity into the market and easing the squeeze on the small and medium sector," he added.
Tata Motors CEO and MD Guenter Butschek said the measures to improve liquidity, drive growth and reduce cost of ownership of the vehicles, should help the industry get back on track. "We thank the government for hearing the concerns of the industry empathetically and doing their best under current conditions," he added.
Mercedes-Benz India Director and CEO Martin Schwenk said the host of positive measures announced has given the much required boost to the auto sector and also sets a clear road map. "We are confident that these measures once implemented, will support growth and drive demand for the auto sector,” he added.
Automobile dealers'body FADA President Ashish Harsharaj Kale said the measures "will definitely uplift customer sentiment for the upcoming festive season and the dealer community has a very positive hope that demand in auto sales would soon pick up and turn positive".
Auto components makers' body ACMA President Ram Venkataramani said, "Enhanced depreciation of 30% until March 2020 will motivate institutional sales of vehicles. Further, removal of ban on purchase of new vehicles by government will also help reduce the current pileup of inventory.”