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Budget advice of FADA for vehicle area

The Federation of Automobile Dealers Associations (F A D A) has given its Budget Recommendation to the Honourable Finance Minister Smt. Nirmala Sitharaman. Commenting on the suggestions, F A D A President, Mr. Ashish Harsharaj Kale, stated, “India nowadays has a passenger automobile penetration of twenty-two motors according to 1000 people while China has 164 vehicles in line with a thousand people. To reach the levels China has accomplished, India needs to feature at least 25000-50,000 Auto Dealer Outlets or more in the next 10-15 years. This will result in the requirement of not simply Additional Working Capital but Capital for Infrastructure to the song of Thousands of Crores and Additional Workforce to the music of one Crore for brand new outlets!”

F A D A President said, “Today the Auto Dealers Have 25,000+ Outlets spread across the remotest corners of our Country supplying Direct Employment to twenty-five lakh People and some other 25 lakhs in Indirect Employment, without displacing them far from their Homes and Families and ensuring an Inclusive Social Employment. To ensure the Long-Term Sustainability of Our Community, we’ve recommended a few Proposals for a few good deal-wanted Support for the Auto Dealer Community and the Auto Industry. Our foremost request, among others, is to be considered underneath MSME on an instantaneous foundation and Consider Industry Status in the Near or Mid-term in Our area.


Today, the Auto Workshops have been saved out of the MSME Category, no matter whether Qualifying and following all Regulations required as an MSME beneath all Parameters. We are quite Hopeful that the equation can be considered looking at the Overall Contribution in addition to the Importance and Need of the Auto Retail Sector in our Country’s Overall Economic Progress. No matter its large Contributions, the Auto Retail area does not avail of any Incentive or Support underneath any Category Currently.” Talking about the support for the Auto Industry, Mr. Kale stated, “The Indian Auto Industry goes through Turbulent Times and Needs Support and a renewed cognizance as being an essential Wheel in our Nation’s Economic Progress.

Current Economies with Global Leadership have continually Looked at the Auto Industry as an Economy Builder and consider it because of the Barometer of Their Country’s Economic Performance. If the Industry is doing good, the Nation’s Economy is also doing precisely. The Same holds for Our Country and searching at the Contribution Of the Auto Sector to Manufacturing and Overall GDP. We’ve asked the Government to Consider Some Bold measures on this budget to assist in getting the Industry back to a Growth Trajectory without Compromising on the tons required Safety and Emissions Standards.

We have requested the Government to Do this by Regulating the Overall GST and the Cess charged to Automobiles. We trust that Doing so will create a Positive Consumer Sentiment and Better Affordability in Automobiles that have seen exceptional Price Hikes currently and could do so inside destiny, too, due to stricter but a great required regulatory norms. A Higher Auto Demand can even Trigger a Positive Rippling Effect on many other Allied and Related Sector and could augur properly for the Overall Economy.

The Other most important request to Revive Growth within the Auto Sector is to announce an Attractive Incentive Policy to inspire Scrappage of Older Vehicles, which nowadays are the primary contributors to vehicular Pollution and Road Safety Concerns. A hit Implementation of the Voluntary Policy will similarly Pave the Way for a Mandatory Scrappage Policy within the Future.” The Federation, in its tips, has requested the Finance Minister to consider the subsequent problems for the Sustainability of the Auto Dealer in addition to assist Revive the Growth of the Auto Industry:

Dealer Issues

Automobile Dealers, Workshops, and service Stations should be included under the ambit of the MSMED Act 2006 because the subsidies and incentives received underneath this act will provide a lot wished remedy to Automobile Dealerships, which give 25 lakh direct employment to human beings near their home places without displacing them. It will even assist the world with loans with lowered interest costs, thus boasting the alternate similarly.

Reduction in Corporate Tax for Proprietary and partnership Firms is similar to what the Government has finished for brand new small Pvt. Ltd. Companies with a turnover of up to Rs. 250 crores. Eliminating debit and credit score card expenses handed on via the banks for transactions better than Rs. 5,000, specifically for Auto Dealers who paint on paper-thin margins to make the change feasible, and digital payments assist in Ease of Doing Business.

Exemption of Auto Dealers on Tax Collected at Source (TCS) inside the Inter Dealer / Re-Sell route needs to be delivered usa206C of the Act, and the definition of buyer needs to be appropriately amended to exclude such transactions. GST Rates must be decreased to 5% on margins of all Pre-Owned Vehicles to create a win-win scenario for the Government, Auto Dealers, and Vehicle Owners

Johnny J. Hernandez
I write about new gadgets and technology. I love trying out new tech products. And if it's good enough, I'll review it here. I'm a techie. I've been writing since 2004. I started back in 2012.