The automobile industry is hopeful that the upcoming Union budget will address some of its long-standing demands.

One such demand is the much-anticipated scrappage policy, particularly for the commercial vehicle segment that is expected to boost demand.

The segment is also expecting a clear roadmap on production-linked initiatives (PLIs). Further, it wants the government to continue investments on infrastructure and the rural economy that managed to pull the country out of the Covid crisis.

Credit rating agency Icra feels the PLI scheme announced by the government has the potential to kick-start significant investments in the automotive industry. The government is also expected to come out with some measures to promote investment in electric vehicles, including associated ancillaries.