Down-in-the-dumps commercial vehicle (CV) makers got a bucketful of incentives in part two of government's stimulus package for the economy announced on Friday.
A higher depreciation rate of 50 per cent for CVs like trucks and vans bought in the January-March period, and an extra line of credit to non-banking financial companies (NBFCs) for purchase of CVs and assistance for purchase of buses for urban transport systems under government's urban renewal scheme are just some of the steps that will positively impact the segment.
“These are steps in the right direction. Higher depreciation benefits will help boost demand,” said PM Telang, executive director (CV), Tata Motors.
Commercial vehicle sales have crashed in the last three months. While the first package announced in December brought down prices by reducing excise duties, Friday's package would help in restoring demand.
“The thrust on financing and lending rates will lift the overall sentiment and help in bringing consumers back to the showrooms,” said Dilip Chenoy, Director General, Society of Indian Automobile Manufacturers.