Auto sector strengthened due to government schemes and increase in MSP

Auto sector strengthened due to government schemes and increase in MSPThe auto sector witnessed the biggest decline in Covid. People lost their jobs and their savings also dried up. This had a very bad impact on the auto market. However, after recovering from Covid, the auto market has once again gained momentum. After Covid, it took some time but the market days started changing. The schemes introduced by the government and increasing the minimum support price (MSP) of agricultural products, especially with a focus on rural areas, had a major contribution in bringing the market back to normalcy. Due to which the flow of money increased in rural areas and people’s savings started increasing. Due to this, the auto sector, especially the two-wheeler segment, gained momentum. In rural areas where there is a lot of transportation problem. Therefore there is good demand for two-wheelers. Because of this, this segment has seen strong growth since September last year.

Reason for record sales
Manish Raj Singhania, President of Federation of Automobile Dealers Association, said that since September last year till now, the auto sector has seen record sales with strong growth. The main reason for this was the introduction of MSP and special schemes for rural areas as well as urban areas by the government. Because of this, they started saving and the auto sector has seen good growth. On an annual basis, the growth of two-wheelers in April 2024 was 33 percent. Three wheelers saw 9 percent growth, passenger vehicles saw 16 percent growth and commercial vehicles saw 2 percent growth.