Union Budget 2022: Here's What FADA Expects For The Used Car And Bike Segment
By Carandbike Team
1 mins read
Published on January 31, 2022
- FADA wants to shift from unorganised segment to organised segment.
- FADA has requested a reduce in rate of GST on used vehicles to 5 per cent
- FADA wants MoF to provide relief in the used vehicle space.
While the automobile industry is gradually and progressively recuperating, post-pandemic, anticipations are pinned on the upcoming Union Budget 2022 to address the revival of the sector to its pre-pandemic growth. For this very reason, the Federation of Automobile Dealers Association (FADA), the top body representing automobile dealers and retailers across the country, has given its recommendations to the Ministry Of Finance, to assist the automotive industry, as well as provide relief in the used-vehicle space by putting brakes on tax leakages, in addition to organising the sector.
To regularise and shift from unorganised segment to organised segment, FADA has requested the Ministry of Finance, to consider reducing the rate of GST on used vehicles to 5 per cent, from the current 12 per cent for vehicles which are sub-4 metre and 18 per cent for vehicles above 4 metre, thus bringing in more business under the domain of GST. The body also predicts that such a move could help India become the fifth largest used car industry in the coming years.
In a statement, FADA said, “The Association requests for a uniform GST rate of 5 per cent on the margin for all used vehicles, to create a win-win situation for the government, dealers, and vehicle owners. With the reduction in GST, it will help the industry to shift from unorganised segment to organised segment thus bringing in more business under the ambit of GST helping in putting a brake on tax leakages.”
The used vehicle market is growing precipitously and, in most countries, is a healthy and established secondary market for used cars. In India, this market is largely unorganised. However, the industry accounts for 5-5.5 million cars per annum with a turnover of over Rs. 1.75 trillion, occupying 1.4 times the size of the new car market. FADA believes if its concerns are accommodated by the Ministry of Finance in the upcoming budget, then this could re-energise the auto retail trade, which in turn will bring the sector and the entire automobile industry back on track and the overall economic growth too.
Great Deals on Used CarsView All Used Cars
- 41,489 km
- 22,376 km
- 84,000 km
- 77,000 km
- 47,549 km
- 76,000 km
- 76,000 km
- 62,500 km
- 81,000 km
- 85,000 km
-6538 second ago
A strong push during the festive season helped Ola Electric achieve its highest-ever monthly sales, retaining its number-one position in the market.
-4176 second ago
Gauhar Khan and her husband, Zaid Darbar, were pictured together at the dealership in Mumbai while taking delivery of their new Mercedes.
-3506 second ago
Hero MotoCorp’s cumulative sales for November 2023 stood at 491,050 units, witnessing a 25.61 per cent increase year-on-year
-1619 second ago
-1041 second ago
The bikemaker’s cumulative motorcycle sales for the year 2023 stood at 621,672 units, reflecting a 13 per cent increase.
19 minutes ago
In the previous month, the automaker sold a total of 11,891 units, marking a growth of 24 per cent as compared to the same month last year.
1 hour ago
At present, India’s largest carmaker holds just a little over 2.06 lakh open bookings, nearly a third of which are for the Ertiga.
2 hours ago
New variant of the Chetak scooter gets some changes as compared to the Premium variant currently on sale.
3 hours ago
The cumulative sales for the Calendar Year 2023 reached 2,10,497 units - a 40 per cent growth over 2022
3 hours ago
While sales were up in comparison to November 2022, Ather reported a 7 per cent decline in sales as compared to October 2023
Urging the need for a pilot prototype, NHEV proposed the deployment of prototype charging stations, like the one recently opened in Gurugram, with 100 chargers, in different parts of the Delhi-NCR region, with EV swappable battery technology.
We spoke to a few industry leaders regarding the Budget 2022 announcement, and here's what they think.
According to Finance Minister Nirmala Sitharaman, who proposed the battery swapping policy, it will introduce an interoperability standard which will transform the EV industry.
1 year ago
In a bid to promote the usage of blended fuel, Finance Minister Nirmala Sitharaman has intoduced an additional excise duty of Rs. 2 on Unblended Fuel from October 2022.
1 year ago
A policy on battery swapping will help in wide scale adoption of batteries as a service. This will reduce upfront ownership costs of electric vehicles and link that cost to vehicle running.