FADA expects boost in auto sector growth

Ramgarh: The Federation of Automobile Dealers Association (FADA) has welcomed the Union Budget 2025-26 presented by finance minister Nirmala Sitharaman, anticipating a boost in Jharkhand's automotive market through various rural economy initiatives.
Govind P Mewar, chairman of FADA's Jharkhand chapter, termed the budget as well-balanced, and growth-oriented focusing on middle-class spending, rural prosperity, and MSME empowerment.The raised income tax exemption limit to ₹12 lakh is expected to drive demand for two-wheelers, passenger vehicles, and EVs through increased disposable income.
Rural initiatives like the Dhan Dhanya Krishi Yojana, benefiting 1.7 crore farmers, and expanded Kisan credit card loan limits are projected to boost demand for tractors, small commercial vehicles, and two-wheelers. MSMEs will benefit from higher credit limits, enhanced startup funding, and new financing options, supporting auto dealership expansion.
The national manufacturing mission, coupled with incentives for solar, EV batteries, and clean mobility infrastructure, aims to establish India as a global sustainable mobility hub. The increase in FDI limit for insurance to 100% is expected to bring competitive financing options for auto buyers.
FADA believes that these measures will stimulate India's auto retail sector across rural, urban, and electric vehicle segments, aligning with the ‘Viksit Bharat' vision and sustainable mobility goals. The budget's comprehensive approach addresses key sectors influencing automotive sales, potentially leading to market growth across segments.