Auto Index was trading at 9,661.05,up by 264.20 points or 2.66% in today’s trading session. It touched intraday high of 9924.35 and low of 9660.10.The Nifty was down 47.65 points or 1.70% at 14,301.75.
Auto majors have welcomed the new vehicle scrappage policy saying it would encourage people to replace old vehicles while boosting the sector.
The Indian automotive industry suffered massive Rs 2,300 crore losses per day during the lockdown and an estimated 3.45 lakh jobs were lost. The automotive industry contributes 7.5% to the overall Indian GDP and accounts for 49% of the manufacturing sector.
Sales of passenger vehicles grew in strong double-digits last month on back of pent-up demand and increased consumer preference for personal mobility solutions amid the coronavirus pandemic. Sales of two-wheelers rose 10.20% to 1,426,865 units in the month under review. While wholesale volumes of scooters went up 10% to 464,744, that of motorcycles grew 11.47% to 910,323 units.
In a major push for attracting big investments towards domestic manufacturing of electric vehicles in India, the government is said to planning to offer a fresh set of incentives to companies as a part of its broader scheme for the auto sector.