Auto stocks trade in the red despite government nod to scrappage policy; Ashok Leyland, Tata Motors top losers
The scrappage policy is expected to boost demand for new vehicles in a COVID-hit economy. It is considered as crucial for the revival of India s auto sector, which was struggling since a year before the onset of pandemic.
Massive traffic at Western Express Highway in Mumbai amid eased lockdown restrictions. (Image: News18)
Auto stocks are trading mixed at open on January 27, a day after the government approved scrappage policy.
The auto index was down over half a percent at open with almost all major stocks trading in the red.
Transport vehicles older than 8 years could be taxed from 10 to 25 per cent of the road tax. For personal vehicles, the green tax could be levied on vehicles older than 15 years. All government-owned vehicles that are more than 15 years old will be taken off the streets. - Overdrive
Union Minister for Road Transport and Highways Nitin Gadkari has approved a proposal to levy a 'Green Tax' on old vehicles which are polluting the environment.
The Ministry of Road Transport and Highways, in its vehicle scrappage policy released on January 25, approved the scrapping of government vehicles older than 15 years