Besides, inventory pile-up at the dealership level and stock management of unsold BS-IV vehicles have become a problem for the sector.
Finance Minister Nirmala Sitharaman allowed government departments to purchase new vehicles to replace old ones.
She further announced that all vehicles purchased till March 31, 2020 shall avail of the benefit of additional depreciation of 15 per cent. It shall increase the higher depreciation on all vehicles to 30 per cent.
Furthermore, the minister said that BS IV vehicles purchased till March 31, 2020 shall remain operational for the entire period of their registration.