Interim Budget 2019 Reaction - Passenger Vehicle - Mr. Ashish Modani, VP & Co-Head, Corporate Ratings, ICRA
Government has increased outlay under for rural sector, with special thrust on rural income and improve road connectivity is positive for passenger vehicle industry, especially entry level cars and utility vehicle segment. Full tax rebate for tax payers having annual taxable income under Rs 5 lakh will support demand in entry segment PV segment. Moreover, abolition of income tax on notional rent on second home is also positive for the industry, as it will leave more income in the hand of the customers.
Government's commitment towards EVs is positive for the industry and recent revision in import duty to support local assembly of EVs augurs well for the industry. However, hybrid vehicles failed to find any favour from the finance minister and will continue to be taxed at higher rate. In absence of any direct benefits such as scrappage scheme for older vehicles or greater direct incentives to promote usage of EVs, the announcements made in Budget 2019-20 would overall be neutral for the sector.
Shares of ICRA LTD. was last trading in BSE at Rs.3019.95 as compared to the previous close of Rs. 3019. The total number of shares traded during the day was 511 in over 13 trades.
The stock hit an intraday high of Rs. 3019.95 and intraday low of 2997. The net turnover during the day was Rs. 1531732.