India’s proposed scrappage policy should not distinguish between private and government vehicles as any such exclusion will fail its meaningful implementation, global consulting firm Arthur D. Little said.
“Also, the policy should focus more on incentivisation and less on enforcement,” said Barnik Chitran Maitra, managing partner & CEO, Arthur D. Little, India & South Asia.
With the economy rebounding, ADL was optimistic about vehicle sales next year, Mr. Maitra said. “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 said.
