Union Minister, Nitin Gadkari has reiterated that the NDA Government will not ban internal combustion engine-powered vehicles. He stated that the govt. is looking to offer temporary tax benefits on Hybrid vehicles to boost demand.
He also suggested that taxes on petrol and diesel vehicles need to be reduced in order to boost sales. As per him, providing incentives for export of vehicles may help the currently ailing industry.
The industry crisis got worsened when NBFC’s, which helped to fund around 55-60% of new and used vehicles, have reduced their lending after IL&FS crisis.