India’s proposed scrappage policy should not distinguish between non-public and authorities vehicles as any such exclusion will fail its significant implementation, world consulting agency Arthur D. Little mentioned.
“Also, the policy should focus more on incentivisation and less on enforcement,” mentioned Barnik Chitran Maitra, managing accomplice & CEO, Arthur D. Little, India & South Asia.
With the economic system rebounding, ADL was optimistic about automobile gross sales subsequent 12 months, Mr. Maitra mentioned. “Unless there are any future lockdowns, next year, the sector should get back to the levels of FY19, he said.
On the impact of the work-from-home regime on mobility, he said WFH has no doubt reduced the travel needs of people, however, the new normal has only increased the need for own vehicles.
According to Mr. Maitra, automobile leasing is catching up globally and it is a suitable model for India as tax saving is one of the most critical trends in the car leasing model, as compared to purchasing a car on EMI.
“In India, we anticipate the car leasing market to grow at 15-20% annually for the next 3-5 years,” he mentioned.