Auto stocks extend gains on proposed scrappage policy, better January sales data
Among auto names, Tata Motors was the top gainer surging 10 percent followed by Ashok Leyland, TVS Motor and Maruti Suzuki. February 02, 2021 / 12:00 PM IST
Equity market continued on its upward trajectory on February 2, a day after rising almost 5 percent. At the time of writing this copy, Sensex is up 1,078.03 points or 2.22 percent at 49678.64, and the Nifty jumping 318 points or 2.23 percent at 14599.20.
The auto index jumped 3 percent, gaining over 7 percent since the Budget day. The move comes after Finance Minister Nirmala Sitharaman in her Union Budget 2021 speech proposed voluntary scrappage policy to replace personal vehicles older than 20 years and commercial vehicles older than 15 years.
Budget 2021 | Fitness testing, certification of old vehicles should take place at earlier intervals: SIAM
The industry body also raised concerns over the increase in customs duty on certain imported vehicle components, saying it could lead to increase in production cost of automobiles. PTI
Representative image (PC- MoneyControl.Com)
With the government proposing a voluntary scrappage policy in the Budget under which vehicles would undergo fitness tests after 15-20 years, auto industry body SIAM on Monday said fitness testing and certification of old vehicles should be done much earlier and at frequent intervals.
The industry body also raised concerns over the increase in customs duty on certain imported vehicle components, saying it could lead to increase in production cost of automobiles.
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Passenger vehicles may get costlier after duty hike
By IANS |
Published on
Mon, Feb 1 2021 17:18 IST |
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New Delhi: Women travelling in a DTC bus show their tickets as they travel free of cost after the scheme to provide free ride to women in DTC and cluster buses announced by the Delhi Government came into effect, on Oct 29, 2019. . Image Source: IANS News
New Delhi, Feb 1 : After a good December-January period when sales of passenger vehicles saw a surge in demand, those who wish to buy a car or a motorcycle may have to shell out more as the government on Monday announced to hike customs duty on some auto parts from 10 per cent to 15 per cent.
If an incentive-based scrappage policy is adopted in the Budget 2021, it shall boost demand for new vehicles while helping the government achieve its targets for reducing carbon emissions