The Effect of Budget 2017-2018 on the Indian Automotive Industry

Porsche showroom in Gurgaon

The Indian automobile industry has in recent times been hit by a number of factors like the diesel ban, higher taxes and consumer uncertainty due to demonetization. While the industry was looking for some specific benefits from the Union budget for 2017-2018, no such measures were announced. It was expected that the government would offer incentives in the form of reduced taxes or benefits to people buying less polluting vehicles. Although no specific incentives were announced, budget measures like increased investment on infrastructure and the application of GST are expected to have a positive impact in terms of improved sales of both new and used cars. On the other hand, aspiring young professionals have not been deterred from buying their dream car, especially with the availability of more affordable used luxury cars like Porsche in cities like Gurgaon.

Impact of Budget on New and Used Cars

The Society for Indian Automobile Manufacturers (SIAM) expects growth in the auto industry to rebound to the pre-demonetization level through a revival of the rural market and substantial increase in expenditure on infrastructure.

The budget proposal of cutting the income tax rate cut from 10 per cent to 5 per cent for individual tax payers earning under ₹5 lakh per annum may give a boost to first time car buyers. So, the sale of entry level or small cars is likely to improve in the near future. The Indian automobile industry may also benefit from the increased availability of skilled labour and technicians.

Used Car Industry: Poised for Robust Growth

The Indian automobile industry is one of the fastest growing in the world, and it is already the sixth largest globally. According to a SIAM report, annual car sales could reach more than 9 million vehicles by 2020. The growth is being driven by the sale of new cars as well as the growing popularity of used cars, especially since the entry of organized players in the segment.

Nearly all automobile companies operating in India, whether local or foreign, have entered the used car segment and are offering pre-owned cars through their own showrooms. These companies purchase their own old vehicles and update them by replacing faulty parts with new ones and carry out the necessary servicing to ensure optimal performance. So, when you buy a pre-owned Porsche in a city like Gurgaon, you get a vehicle that is as good as new, with the necessary certification and assurance from the manufacturer itself.

An increasing section of people are choosing to buy pre-owned cars because of the price advantage and the quality assurance they get from used car dealers, such as the Porsche showroom in Gurgaon. The economical prices of pre-owned cars help all types of buyers, along with other benefits, such as:

  • Lower price points and wide variety ensure that first time car buyers gets a technically sound vehicle at a fair price.
  • Availability of used cars makes it possible for a family to buy multiple cars without having to break the bank.
  • Good quality cars at reasonable prices allow people to upgrade to luxury cars and fulfill their dreams.

 If you too wish to buy a dream car without compromising on the quality and performance of the vehicle, approach a used car showroom, like that of Porsche in Gurgaon and book a test drive.

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