Mumbai: Automobile sellers body FADA on Thursday advised the government to recollect enterprise reputation for the automobile retail area, a move on the way to help it avail clean price range and maintain enterprise within a long time.
Suggesting a slew of measures to Finance Minister Nirmala Sitharaman for the increase of the enterprise and automobile retail sector ahead of the Union Budget, the Federation of Automobile Dealers Associations (FADA) additionally sought to lower of GST to five percent on margins of all pre-owned cars to create a win-win scenario for all stakeholders.
The Federation claims illustration of some 25,000 automotive dealers pan India.
“Our important request, among others, is to keep in mind automobile retail beneath MSME on an immediate basis and industry popularity inside the close to or mid-term,” FADA President Ashish Harsharaj said.
Granting of enterprise repute will convey higher financing options, because the sector is capital extensive in nature, it said including there are various other benefits inclusive of precedence lending from banks, outside commercial borrowings, smooth financing from pinnacle creditors, entry of PE investments, less complicated get admission to to home and global price range and higher tax benefits, amongst others.
The Federation has additionally sought a discount in company tax for proprietary and partnership firms except in search of removal of debit and credit score card prices passed on using the banks for transactions better than Rs five,000, specifically for auto sellers who paintings on paper-thin margins.
According to the Federation, India needs to feature as a minimum 25,000-50,000 or greater car provider outlets within the next 10-15 years, for you to result in the requirement of no longer just extra operating capital but capital for infrastructure to the tune of heaps of crores, it said.
It will even require the extra staff to the song of 1 crore humans for the brand new shops, in step with FADA.
Requesting the authorities to alter downwards the general GST and the cess charged to vehicles, FADA stated, “We trust it’ll create a wonderful purchaser sentiment and better affordability in cars, that have seen exceptional price hikes currently.”
The Federation has additionally demanded a statement of attractive incentive policy to inspire scrappage of older motors and also revive boom inside the automobile sector.
Challenges of Telematics
However, there are some worries with telematics being used by insurers. Standardized rules on records capturing and its manner is yet to be determined. This increases concerns for lack of privateness or misuse of statistics. The other subject is while the patron desires to transfer to every other coverage company. The new insurer might not take delivery of their using facts because the method of data series is distinctive. This should result in the consumer dropping his advantages and has to start from scratch.
Nonetheless, telematics era is tremendously new and is yet to take over the market fully. Like any new era, there might be system faults a good way to be constant in due time. These demanding situations will no longer be an impediment for auto mobility to be incorporated with coverage, as the professionals of vehicle mobility outweigh the cons. Gradually all insurance providers will largely depend upon mobility solutions that allows you to expand their business and will become inevitable for car insurance to use.