Toyota hopeful of Scrappage Policy in 2021 Union Budget to boost demand

The Union Budget 2021 announcement is expected to take place soon. Automakers and auto unions have highlighted their hopes and demands and many like Toyota are hoping for a Scrappage Policy introduction for their aid.

By:January 25, 2021 7:06 PM

Toyota Kirloskar Motors has released a statement with respect to its hopes from the upcoming 2021 Union Budget. The Indian Government is expected to announce its financial plans and schemes for the 2021-22 financial year. The auto industry, which has been ailing since the last few years, has been looking for measures to boost demand. Although GST reduction is something the auto sector is keenly seeking, the vehicle scrapple policy is said to be more beneficial in the long run. The scrapple policy is said to be in the works for some time now. However, it has not come to fruition as of yet.

Toyota Kirloskar Motor is hoping the Vehicle Scrappage Policy will be introduced with this year’s budget announcement. The Indian arm of the Japanese automaker said; “The scrappage policy, has the potential to simultaneously reduce pollution, fossil fuel consumption as well as boost demand for new vehicles thereby meeting many key objectives. We are hopeful that this will find a mention in the upcoming budget.”

Toyota also believes that reforms in land, labour and liquidity also needs to be considered to help in attracting investments and improve competitiveness. Additionally, the automaker also hopes that custom duties on SKD and CKD manufactured products need to be rationalised. Toyota believes; “it will be beneficial in the long term for faster market introduction and localisation of newer & enhanced technologies.”

Toyota states; “The economic recovery which is evident now, has proved that the fundamentals of the Indian economy remain strong. The growth momentum across key sectors witnessed in the post-lockdown period is encouraging. India Inc. is now looking forward to a Budget that will strike a right balance between the need for addressing fiscal considerations and the requirement to propel growth, thereby further consolidating the gains now seen.”

Toyota is also looking forward to measures that can provide the necessary drive for local manufacturing of xEV and its related parts in India.

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