New Delhi, NFAPost: Prakash Javadekar, Union Minister of Environment, Forest & Climate Change, Information & Broadcasting and Heavy Industries & Public Enterprises assured the automobile industry of support from the Government in reviving demand, which has taken a dire hit owing to the Covid-19 pandemic.
The minister made the announcement while speaking at the Society of Indian Automobile Manufacturers (SIAM) organized 60th Annual Convention on “Re-Building the Nation, Responsibly”.
Putting across recommendations to the government towards boosting demand in the automobile sector, SIAM President and Senior Advisor Mahindra & Mahindra Rajan Wadhera said SIAM thanks the government for all the support it has extended to the auto sector, such as the reduction in the repo rates, credit access etc.
Festive season
“We now need more specific steps to boost demand in the sector, as the festive season is fast approaching. Some of the key tasks include lowering of GST rates from 28 to 18% across all vehicle categories and automotive components, an incentive-based vehicle scrappage policy and taking concrete steps towards realizing the vision of the Automotive Mission Plan,” said SIAM President and Senior Advisor Mahindra & Mahindra Rajan Wadhera.
Reassuring the automobile industry, Union Minister of Environment, Forest & Climate Change, Information & Broadcasting and Heavy Industries & Public Enterprises Prakash Javadekar said infrastructure is the only answer to the growth story of India and the government is looking at investing Rs 100 lac crore towards infrastructure projects over the coming times. This will also hugely benefit the automobile industry.
Reduction in GST rates
While acknowledging the auto industry’s recommendation for a reduction in GST rates, Union Minister of Environment, Forest & Climate Change, Information & Broadcasting and Heavy Industries & Public Enterprises Prakash Javadekar further added that GST reduction will ultimately benefit the Government and I will be taking it up with the Finance Minister and Prime Minister’s office. He also assured that a well-entrenched vehicle scrappage policy will come soon that will bode well for the automobile industry.
Union Minister of Environment, Forest & Climate Change, Information & Broadcasting and Heavy Industries & Public Enterprises Prakash Javadekar said the government has now shifted lockdown to containment zones. There will be no lockdowns and supply side blockages will ease out.
“The Government is also focusing on e-mobility by pushing for creating better infrastructure and providing incentive to electric vehicle manufacturers. Once cost of electrified vehicles goes down, demand will increase and this segment will be highly profitable,” said Union Minister of Environment, Forest & Climate Change, Information & Broadcasting and Heavy Industries & Public Enterprises Prakash Javadekar.
Opportunities and challenges
CII President and Kotak Mahindra Bank Managing Director & CEO Uday Kotak commented that in the last several months, the government of India has shown high sensitivity to lives, livelihoods and the overall economy.
“Now is the time for the government and the industry to join hands and work in partnership, to salvage the current slump. Owing to the Covid-19 pandemic, we are in a “never normal period” with new opportunities and challenges. As the festival season is approaching, we expect to see an increase in demand. Therefore, it is now imperative for us to ease out the supply chain bottlenecks. Money is aplenty, banks are ready, willing and eager to extend easy loans and financing option. We need to make sure that OEMs do not face any supply side disruptions,” said CII President and Kotak Mahindra Bank Managing Director & CEO Uday Kotak.
SIAM President Elect and Managing Director and CEO Maruti Suzuki India Kenichi Ayukawa said the industry is looking forward to sound development.
“It means, the industry will increase in production, sales, exports and more localization of parts including electronics. It means Self-reliant i.e. Atmanirbhar Bharat,” SIAM President Elect and Managing Director and CEO Maruti Suzuki India Kenichi Ayukawa.
The Society of Indian Automobile Manufacturers (SIAM) is a not-for-profit apex national body representing all major vehicle and vehicular engine manufacturers in India. SIAM works towards supporting sustainable development of the Indian Automobile Industry with the vision that India emerges as the destination of choice in the world for design and manufacture of automobiles. It also works towards facilitating enhancement of the competitiveness of the Indian Automobile Industry, reducing cost of vehicles, increasing productivity, and achieving global standards of quality.
