Yesterday, CNBC-Awaaz held exclusive talks with VIP & SONDHI, MD & CEO, ASHOK LEYLAND, to find out the industry’s reaction to the budget presented in Parliament by Finance Minister Nirmala Sitharaman. What is the industry’s demand on scrap policy from them. Apart from this, how is the demand in the commercial vehicle? Speaking to Awaaz, VIPIN SONDHI said that the budget will boost demand with infra push and scrap policy.
Vipin Sondhi said that there has been a demand for giving incentives in scrap policy as demand will increase only by giving incentives on scrap. Apart from this, the BS-VI transition will be easier with an inset based policy. He said that this policy should have been declared as insistent best as the industry had demanded that it was inset based but the Finance Minister has used the word Voluntary for it. Therefore, there will be a need to study this policy in detail in the budget. If it is inset based, then it will be better for the industry.
He further said that pollution from 15-year-old trains is more. At the same time, new jobs will also be increased by scrap policy and transportation will be easier by improving the infrastructure. Due to the good road, transportation expenses will be reduced. While e-commerce has increased demand for small commercial vehicles.
CMD Sondhi said that this policy has come now. Now this scrappage policy has started. Now its scrappage centers should be built which will increase employment.
Vipin Sondhi said that the demand for commercial vehicle has decreased for the last 2 years. There is a recovery in demand for LCV. Improvement in the economy will increase the demand for commercial vehicles.
Talking about giving a push in infra, he said that it is good for every person, this increases national productivity. Due to good infrastructure, airport, railway station, people arrive at their destination fresh. The cement and steel sector also accelerates as the infrastructure grows. Due to good roads, there is a possibility of increased demand for commercial vehicles.
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