Budget 2020 Expectations: CARS24 co-founder speaks on pre-owned car market, vehicle scrappage policy

Preparations for Budget 2020 are in full swing. PM Narendra Modi-led Central government is all set to present Budget 2020. Various sectors are pinning high hopes on a big presentation as this is the first full budget of Modi 2.0. Ahead of the big presentation by Finance Minister Nirmala Sitharaman, Ruchit Agarwal, Co-founder and CFO, CARS24, spoke on what he seeks from the FM in terms of pre-owned car market.
 
“We are eagerly waiting for the Union Budget 2020 to be announced and are expecting to hear some major reforms and developments which can help in reviving the pace of the auto industry. Although, pre-owned car market has sustained the momentum and is growing at a faster rate. With more customers (especially the first time buyers) preferring to purchase pre-owned cars, reduction of GST rate to at least 5% can help in making them more affordable and hence will help in increasing the auto sales," says Ruchit.

Agarwal further adds, "Another key move which can add value to the auto sales is vehicle scrappage policy, which is much awaited reform. Selling a car is usually considered as lengthy and chaotic task by many. With ease in Interstate transfer of older cars by RTO, it will be more convenient for customers to secure their most preferred cars from across the regions."

"Considering startup ecosystem, we are really hoping that ESOP should be taxed at liquidity not during exercise which will be a beneficial move for emerging companies," concludes Ruchit Agarwal.

Union Budget for 2020-21 is all set to be presented on Saturday, February 1, 2020.
 
Interestingly, this will be first time after 2015-16 when budget is set to be presented on Saturday.

The halwa ceremony, marking the commencement of Budget printing process for Union General Budget 2020-21, has been already held in North Block in the presence of the Union Finance & Corporate Affairs Minister Nirmala Sitharaman.